Google launches cheaper AI image model amid rising corporate AI costs

Google introduced its Nano Banana 2 Lite model for generating and editing images, offering a four‑second text‑to‑image conversion and lower token prices than its predecessor. The company said the model will be integrated across its services, including AI Search and Google Photos, and unveiled Gemini Omni Flash for short video generation.

At the same time, firms are confronting higher-than‑expected AI expenses. A Reuters report noted that Uber exhausted its AI budget for 2026 within four months, a phenomenon dubbed “tokenmaxxing” where extensive AI use drives up token‑based charges. Companies are now favouring smaller, cheaper models for routine tasks such as email sorting and basic data analysis while reserving larger models for complex work.