It'd be interesting to know how much the Intelligence as a Service angle serves as a value-add in the minds of Google's executives.

You can get decent open-weight models now. That's not difficult. The difficulty is 1) running them and 2) compliance.

My company runs Claude on GCP's Vertex AI solution. We're in the US healthcare IT space, so the models need to be from somewhere that American healthcare agencies and companies have traditionally been okay with sourcing code from - which means the US, Canada, and maybe Europe. The stuff that handles PHI/PII must be in the US. The expense of hosting is more of a PITA than most customers want to go through this early in the technology's lifecycle, and intelligence gains are simply a matter of degree for most business tasks.

In theory, we could find some open-weight model (likely from China) for our development agentic work and host it anywhere you can host AI models. We don't, though, and I think Google, OpenAI/Microsoft, and Anthropic see that as the core of their business.