Google courts coders and consumers at I/O, touts cheaper AI model

Reuters Videos Wed, May 20, 2026 at 12:59 AM EDT Trade GOOG on Coinbase Trading disclosure STORY: :: GoogleAlphabet’s Google on Tuesday put AI agents directly into its search box and rolled out a faster, cheaper version of its Gemini model.That’s as it looks to to blunt gains by rivals Anthropic and OpenAI among enterprise…


Google courts coders and consumers at I/O, touts cheaper AI model
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<span>STORY: :: Google</span><span>Alphabet’s Google on Tuesday put AI agents directly into its search box and rolled out a faster, cheaper version of its Gemini model.</span><span>That’s as it looks to to blunt gains by rivals Anthropic and OpenAI among enterprise customers.</span><span>During its annual I/O developer conference in California, Google launched Gemini 3.5 Flash, a model designed for coding and automated tasks, and said 3.5 Pro was coming next month.</span><span>The tech giant also introduced Gemini Spark, a new agent that pulls information across its suite of products to draft reports and manage schedules, as well as new video model Gemini Omni.</span><span>The company also lowered the cost of its top-tier AI Ultra subscription plan to $200 a month from $250.</span><span>It also announced a $100-a-month version of the Ultra subscription it said was tailored for developers and other work-related users.</span><span>As competition shifts to big-spending business customers, Alphabet CEO Sundar Pichai highlighted lower costs.</span><span>“We’ve heard that many companies are already blowing through their annual token budgets, and it’s only May. If companies used a mix of flash and other frontier models they could save a lot of money. To put this in perspective, top companies in Google Cloud are processing about 1 trillion tokens a day. If they shifted 80% of their workloads from other frontier models to 3.5 Flash, they’d save over $1 billion annually.”</span><span>Google also reinforced its core consumer products including YouTube and Search…</span><span>… touting new features including a set of agents that will autonomously complete tasks like making purchases, monitoring tickets, and planning schedules in real time.</span><span>Search was Alphabetโ€™s biggest revenue driver in 2025, when it reported over $400 billion in total revenue.</span>

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