Google highlights AI budget overruns and unveils Gemini 3.5 flash
At Google I/O 2026, CEO Sundar Pichai called out a big-money problem: businesses are burning through their yearly AI budgets by May, thanks to the huge demand for advanced AI tools.
With top companies processing about 1 trillion tokens a day, Pichai said this cost surge is an urgent challenge that needs quick action.
Gemini 3.5 Flash could save $1B+
To help companies save cash (without losing performance), Google launched Gemini 3.5 Flash, a new AI model that's faster and cheaper to run.
Pichai mentioned switching most workloads to this model could save businesses over $1 billion each year.
Already live worldwide and powering tools like Search's AI Mode and Android Studio, Gemini 3.5 Flash is designed for coding, smart agents, and complex tasks, making it a budget-friendly upgrade for anyone relying on AI tech.