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Google just fired a warning shot in the AI subscription price wars

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Google just made its budget AI subscription plan a lot more budget-friendly, bringing a price war that’s been brewing in emerging markets squarely to American consumers.

The company announced Monday that it is cutting the monthly price of Google AI Plus from $7.99 to $4.99 — while doubling the storage included at that tier, from 200 gigabytes to 400 gigabytes.

Vikas Kansal, product lead for Gemini AI subscriptions, said on X that the storage updates would roll out to users over the next several days.

Google AI Plus launched in January as the most affordable paid AI subscription in the U.S. market, aimed at individual users and students rather than enterprise customers. Apparently that wasn’t cheap enough.

It includes a decent feature set, too, including video generation via Omni Flash; the creative studio Google Flow; and NotebookLM, Google’s AI research assistant. For heavier users, Google also offers AI Pro and AI Ultra at higher price points and usage limits.

The price cut is worth indexing on for reasons beyond Google’s own product roadmap. Subscription pricing hasn’t yet been a key battleground among AI providers in the U.S. But that’s changing in real time, suggests Chi-Hua Chien, co-founder and managing partner at consumer-focused venture firm Goodwater Capital; he sees Monday’s announcement as the next salvo in the commoditization era for AI infrastructure, pointing to Google’s structural advantages — vertical integration, distribution, the ability to bundle — as precisely the kind of force that’s likely to erode margins for purer-play AI providers over time.

The historical parallel he reaches for is instructive. “If you look at the web era, the infrastructure companies were Microsoft, Cisco, Oracle, Northern Telecom, Lucent, Akamai, Equinix,” he told TechCrunch. “A lot of those companies survived for a period of time but aren’t worth a lot today.” The reason, he said, is that during every big tech shift — from PC to web to mobile — the infrastructure players “get commoditized very aggressively because the end customer doesn’t think, ‘Ooh, are my bits moving on Cisco networking equipment?’ They’re just thinking, ‘How do I move my bits as cheaply as possible?’”

He sees the same dynamic coming in the not-too-distant future for today’s AI infrastructure layer — including the frontier model providers themselves.

“My prediction for a lot of these infrastructure companies — and when I say infrastructure, I mean an OpenAI or an Anthropic, or the backend components, energy, chips, hosting — there will be a period of time when these companies are valuable,” he said. “But over time, you will see them get increasingly commoditized.”

It’s certainly something that a bigger pool of investors will be pondering soon. Both OpenAI and Anthropic have filed confidentially to go public, and their ability to command premium valuations may soon be tested by exactly the kind of price competition Chien is describing.

That competition has been building for nearly a year in markets like India, one of the fastest-growing AI user bases in the world. OpenAI drew first blood there in August of last year, launching ChatGPT Go at roughly $4.60 a month — a fraction of its standard $20 Plus plan. Google followed in December with a sub-$5 AI Plus plan of its own for Indian users.

Monday’s announcement suggests the same logic that drove those emerging-market moves — undercut, bundle, and capture users before rivals do — has now crossed over to the U.S. market.

Anthropic, notably, hasn’t followed. Unlike OpenAI and Google, it has yet to introduce localized pricing for India or a budget tier anywhere, a move that may become harder to avoid as its rivals keep slashing prices.

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NDC primary fallout: What I discussed with Kwankwaso – Seriake Dickson

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Former Bayelsa State Governor and chieftain of the National Democratic Coalition, NDC, Seriake Dickson, has disclosed details of his meeting with former Kano State Governor, Rabiu Musa Kwankwaso, saying their discussions centred on resolving internal issues within the party in Kano State.

Dickson made this known in a statement shared on his Facebook page on Tuesday following a meeting with Kwankwaso and senior NDC officials at his residence.

According to him, the meeting was part of his ongoing mediation efforts aimed at ensuring unity between party officials in Kano State and Kwankwaso, whom he described as the party’s leader in the state and vice-presidential candidate.

He noted that the NDC was rapidly emerging as a leading opposition platform in Nigeria and that disagreements were inevitable in any growing political movement. However, he stressed that such issues were being addressed through dialogue, consultation and reconciliation.

Dickson expressed confidence that the discussions with Kwankwaso would strengthen cooperation within the party and help members work together towards achieving electoral success.

He further described the Kwankwasiyya Movement and the Obidient Movement as important support groups for the party, revealing that steps were being taken to integrate their members into NDC activities nationwide.

“The Kwankwasiyya Movement, the Obidient Movement and other support groups remain valuable mobilization networks. I had earlier recieved a courtesy delegation some weeks ago by the Obidient Movement and promised to ensure their integration into the activities of our party at various levels across the country; and the same for the Kwankwasiyya movement which I have asked for their list of coordinators to be forwarded to the party for the same purpose. This process will be undertaken in a structured and orderly manner,” Dickson said.

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Senate Seeks Ban On Textile Imports, Urges Revival Of Local Mills

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By Nefishetu Yakubu

 

The Senate on Tuesday urged the federal government to ban importation of textile materials and revive Nigeria’s textile industry to create jobs for the growing unemployed population.

 

The resolution followed a motion sponsored by Sen. Sunday Katung (Kaduna South) on the urgent need to revive Nigeria’s textile industry and restore its contribution to economic growth.

 

The motion was co-sponsored by Sen. Suleiman Abdurrahman (Kano South), Sen. Simon Lalong (Plateau South), Sen. Aminu Tambuwal (Sokoto South), Sen. Hussaini Uba (Jigawa Northwest) and Sen. Mohammed Muntari (Katsina South).

 

Katung, while moving the motion, said that the first large-scale textile manufacturing mill in Nigeria was established in 1957 in Kaduna and later replicated across the regions.

 

He recalled that Nigeria’s textile industry flourished in the 1960s and 1970s due to strong government intervention, including restrictions on textile imports that attracted investors.

 

According to him, by the late 1970s and 1980s, Nigeria had about 167 textile mills employing more than 500,000 workers directly.

 

He said the sector became the country’s second-largest employer of labour after the federal government, contributing significantly to industrialisation, commerce and economic development.

 

Katung noted that Kaduna earned the title of “Textile City” because it hosted major integrated mills and the headquarters of the Nigerian Textile Manufacturers Association.

 

“Kaduna once had about 11 textile companies operating optimally, including Arewa Textiles Plc, Finetex Nigeria Ltd., Nortex Nigeria Ltd. and United Nigerian Textiles Ltd.

 

“By 1997, Kaduna Textile Limited, Arewa Textiles and United Nigerian Textiles Limited were barely functioning due to obsolete equipment and inadequate capital,” he said.

 

Katung lamented that by 2007, the three major mills had shutdown completely, leaving more than 7,000 workers unemployed and facilities abandoned.

 

The lawmaker said there were currently no significant new investments in the sector, while Nigeria depended on imports for more than 99 percent of textile needs.

 

He noted that Nigeria’s textile industry was once the third largest in Africa, generating about 2 billion dollars annually from diverse products.

 

According to him, the industry produced more than 1.4 billion pieces of textiles annually, including African prints, bed sheets, towels, and furnishing fabrics.

 

Katung,also identified the influx of foreign textile products into the country as one of the most serious threats confronting local manufacturers.

 

He further observed that since the lifting of the textile import ban in 2010, about 80 percent of textiles consumed in Nigeria were imported.

 

Sen. Mohammed Monguno, however, said Nigeria’s textile industry, once vibrant and economically significant, was now struggling due to imported products and rising production costs.

 

Monguno proposed a ban on textile imports and the establishment of a special intervention fund by the Central Bank to revive the sector, which was adopted by the lawmakers.

 

Contributing, Sen. Natasha Akpoti-Uduaghan, called for greater attention to cotton cultivation, describing it as the primary raw material required for the revival of Nigeria’s textile industry.

 

She cited the contributions of cotton to economies such as the United States and Ethiopia, urging strategic collaboration among ministries to restore Nigeria’s competitiveness.

 

Sen. Adams Oshiomhole blamed the collapse of Nigeria’s textile industry on poorly conceived trade policies and urged the Senate to ensure the motion does not suffer the fate of previous resolutions.

 

The Senate, thereafter, adopted additional prayers urging the federal government to provide special intervention funds through the Bank of Industry to support textile revival.

 

The Senate consequently urged the federal government, the Ministry of Agriculture and the Ministry of Industry, Trade and Investment to revive textile industries nationwide.

 

According to the lawmakers, reviving textile factories in Nigeria would create jobs, reduce youth restiveness and address growing insecurity challenges(NAN)

(www.nannews.ng)

NY//MAM/FEO

 

Edited by Modupe Adeloye/Francis Onyeukwu

 

 

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