Alphabet’s AI Gamble: Google I/O 2025 Leaves Investors Cold, But Ultra Subscription Aims to Reignite Excitement

Alphabet (GOOGL) is facing a critical moment in its AI journey. The tech giant's shares dipped following its I/O 2025 developer conference, signaling that investors weren't entirely convinced by the company's AI roadmap. Concerns revolve around the timing of commercial deployments and their potential impact on near-term revenue. Did Google deliver enough to satisfy Wall Street's hunger for AI innovation? Or is Google playing the long game for future AI dominance?

The I/O keynote showcased deeper integration of Gemini AI across core Google products, including natural-language commands for directions, reminders, and email. Google also unveiled AI Mode for Search and Chrome, promising a revolutionary generative-AI search experience with conversational answers. A new premium AI subscription was launched for business users at a steep $249.99 per month.

Beyond search, Google introduced Android XR for smart glasses in partnership with Gentle Monster and Warby Parker and unveiled Veo 3, its next-generation AI video model. CEO Sundar Pichai described these innovations as a “total reimagining of search,” but investor sentiment remains cautious.

To counter the post-I/O disappointment, Google is introducing Google AI Ultra, a new subscription plan offering the highest access to Google's most capable AI models and premium features. Priced at $249.99/month in the U.S. (with a 50% discount for the first three months), this plan targets filmmakers, developers, and creative professionals who demand the absolute best of Google AI. Google AI Ultra includes:

• Gemini: Highest usage limits across Deep Research, cutting-edge video generation with Veo 2, and early access to Veo 3.
• Flow: AI filmmaking tool custom-designed for Google DeepMind’s models, enabling cinematic clip creation with intuitive prompting.
• Whisk: Tool to explore and visualize new ideas using text and image prompts.
• NotebookLM: Access to the highest usage limits and enhanced model capabilities later this year.
• Gemini in Gmail, Docs, Vids, and Chrome: Integration of Google AI into everyday tasks.
• Project Mariner: An agentic research prototype for managing multiple tasks from a single dashboard.
• YouTube Premium: Ad-free viewing and listening.
• 30 TB of Storage: Massive storage capacity across Google Photos, Drive, and Gmail.

Google's AI ambitions extend beyond entertainment and productivity, with potential applications in healthcare. At I/O, Google highlighted how AI Mode, powered by Gemini 2.5, could cut an estimated $20 billion in annual waste from manual administrative tasks within U.S. health systems. Vertex AI Search integrates with AI Mode, allowing clinicians to query and retrieve relevant information from electronic health records (EHRs), medical white papers, and clinical guidelines in real-time. Project Mariner could automate appointment scheduling and insurance verification, reducing administrative burdens.

The average target price for Alphabet Inc. based on analyst estimates is $200.33, suggesting an upside of +22.16% from the current price of $163.98. However, the company needs to demonstrate that its AI investments will translate into tangible revenue growth.

Google's I/O 2025 presented a vision of an AI-powered future, but the market remains skeptical until commercial deployments deliver concrete results. Will the Google AI Ultra subscription be the boost Google needs to regain investor confidence? Or will the company need to refine its strategy to truly captivate the market?
Share your thoughts and predictions in the comments below!

• Gemini AI
• Google AI Ultra
• Google I/O

Related issues news

When is Google.io 2025?

This year's event is open to everyone online on May 20-21, 2025.

How do I get Google AI mode?

On your Android device, open any browser. Make sure you're signed in to your Google Account with Incognito mode turned off. Do a search on Google. If an AI Overview or another experimental generative AI feature is available, it will show in search results.

What is Google AI Ultra?

Launched at Google I/O 2025, AI Ultra is a premium subscription offering access to advanced AI models, higher usage limits, and exclusive tools for creators, developers, and professionals.

What is Project Mariner?

Project Mariner observes what's displayed in the browser. It then reasons to interpret your goals, makes a plan u2014 and takes action.

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