Tech giant Google (GOOGL) recently launched its Gemini AI chatbot on iOS, but it still lags behind competitors when it comes to retaining paid users, according to The Wall Street Journal. Data from Earnest Analytics shows that only 60% of Gemini Advanced users kept their subscription after six months. In comparison, OpenAI’s ChatGPT Plus, backed by Microsoft (MSFT), retained 70% of its subscribers, while Anthropic’s Claude Pro, supported by Amazon (AMZN), had slightly over 60%.
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Google’s Gemini Advanced costs $19.99 per month and is bundled with the Google One AI Premium plan, which includes 2TB of storage and other perks. Competitors like ChatGPT Plus also cost $20 per month but offer features such as advanced voice modes, custom GPTs, and early access to updates. Anthropic’s Claude Pro and Perplexity Pro are priced similarly, while Character.AI’s c.ai+ is more affordable at $9.99 per month. Despite the comparable pricing, Google’s Gemini is facing challenges in terms of standing out from this crowded market.
While OpenAI claims ChatGPT has 300 million weekly users and nearly 465 million downloads, Gemini has only been downloaded an estimated 106 million times, according to SensorTower. These figures highlight the fierce competition Google faces in the generative AI space, where strong user retention and innovative features are critical for success.
Google to Buy 100,000 Tons of Carbon Credits
On the sustainability front, Google has signed a major deal to buy 100,000 tons of carbon credits from Varaha, an Indian initiative converting agricultural waste into biochar. This material not only removes carbon dioxide from the atmosphere but also improves soil health. Varaha plans to source waste from small farms, convert it into biochar using reactors, and distribute it as a fertilizer alternative. Google sees biochar as a practical and impactful method for reducing carbon emissions, which compliments its broader carbon dioxide removal strategies.
While Google expands into India’s carbon dioxide removal sector and strengthens its AI offerings, critics argue that solutions like biochar aren’t permanent substitutes for cutting emissions. Even so, initiatives like these demonstrate that Google is focused on addressing climate change despite its main goal of trying to remain relevant in the AI market.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 24 Buys and seven Holds assigned in the past three months. After a 37% rally in the past 12 months, the average GOOGL price target of $216.29 per share implies 11.5% upside potential from current levels.
