Google's Gemini to stay at $20 as competitors chase premium market

Google seems to be going all in on its Gemini AI in 2025. According to CNBC, which obtained audio from a strategy meeting on December 18, Google might be keeping its advanced tier priced at $20 per month while rivals push premium subscriptions in the rapidly evolving generative AI market. 

“Right now, we don’t have any plans for [higher-tier pricing],” said Demis Hassabis, DeepMind co-founder and Google executive. “The $20 monthly charge for Gemini Advanced is a good value.” This approach starkly contrasts with OpenAI, whose GPT-4-powered ChatGPT Plus costs $20 per month, but its GPT-4 Turbo version offered via API often exceeds $100 monthly for heavy users. Meanwhile, Anthropic’s Claude 3 is priced at $20 per month for its Pro tier, and Jasper AI’s plans range from $39 to $99 per month.

Furthermore, Elon Musk’s X has also bumped up the pricing for its top-of-the-line AI plan. This makes it clear that there’s a growing appetite for premium AI tools among professionals.

While Google leans into affordability, the company isn’t shying away from its ambition to lead the AI space. Pichai described 2025 as a “critical” year, highlighting the urgency to scale Gemini and cement its consumer presence. Google’s strategy revolves around turbocharging Gemini as a universal assistant capable of seamlessly operating across devices and domains.

Amid cost-cutting measures and regulatory pressures, Pichai urged employees to remain innovative yet efficient. “Often, constraints lead to creativity,” he remarked, citing Google’s early days as an example.

With Gemini positioned as Google’s next flagship AI product, the company is betting that a combination of competitive pricing, robust functionality, and integration into its ecosystem will help it maintain relevance in an increasingly crowded market. However, with competitors targeting the premium segment, 2025 will test whether Google’s scrappy approach can deliver dominance.