Sundar's email mentions something critical - Jeff Dean is going to be the Chief Scientist in DeepMind, and coordinate back to Sundar. This is a big deal; that move tells you that Google is taking being behind on public-facing AI seriously, Dean is an incredibly valuable, incredibly scarce resource.
If we wind way back to Google Docs, Gmail and Android strategy, they took market share from leaders by giving away high quality products. If I were in charge of strategy there, I would double down on the Stability / Facebook plan, and open source PaLM architecture Chinchilla-optimal foundation models stat. Then I'd build tooling to run and customize the models over GCP, so open + cloud. I'd probably start selling TPUv4 racks immediately as well. I don't believe they can win on a direct API business model this cycle. But, I think they could do a form of embrace and extend by going radically open and leveraging their research + deployment skills.
If we wind way back to Google Docs, Gmail and Android strategy, they took market share from leaders by giving away high quality products. If I were in charge of strategy there, I would double down on the Stability / Facebook plan, and open source PaLM architecture Chinchilla-optimal foundation models stat. Then I'd build tooling to run and customize the models over GCP, so open + cloud. I'd probably start selling TPUv4 racks immediately as well. I don't believe they can win on a direct API business model this cycle. But, I think they could do a form of embrace and extend by going radically open and leveraging their research + deployment skills.