Google Cuts AI Ultra Price to $200 and Unveils Enterprise Gemini 3.5 Flash
Google introduced AI agents in Search and a faster lower-cost Gemini model for enterprise customers at I/O, highlighting tools such as Gemini 3.5 Flash. It cut AI Ultra pricing from $250 to $200, added a $100 developer tier and projects corporate users will save over $1 billion annually.
1. I/O Conference AI Announcements
At its annual I/O event, Google showcased new AI agents integrated into Search capable of automating tasks like scheduling, ticket monitoring and product purchases. The company also unveiled Gemini 3.5 Flash, a specialized model for coding and automated workflows, and confirmed a Gemini 3.5 Pro release next month.
2. Pricing Strategy and Tiers
Google reduced its AI Ultra subscription fee from $250 to $200 per month and introduced a $100-per-month developer tier. These adjustments aim to lower entry barriers for high-usage customers and individual developers seeking advanced AI capabilities.
3. Enterprise Market Impact
Executives project that large corporate clients could save over $1 billion annually by migrating to Google’s AI models, which offer comparable performance to frontier competitors at roughly one-third of the cost. The moves intensify competition with Anthropic and OpenAI for high-value enterprise AI spending.