I think this is the correct answer.

Google never really has to outpace the competitors (other than to have some relevance) but they have a very large group of business customers using them for business process work in Gmail, Docs, etc.

Clearly they will win when the models are close enough to frontier to be good enough, but are long-term cheap for buy. I.e. they will aim to make it a commodity.

In theory MS has the same opportunity (plus they have GitHub so, you know, dev eco system too) but seem be blowing the strategy.

Anthropic and OpenAI are having to race to the top on ability entirely to keep their name in the media and in front of us all (which costs: hence more recently trying to pivot away from model releases and more into controversy/danger). The main cost is in training and so this strategy is much much more expensive and this will play out either as a huge cost hike or a forced slow down in pace.

I believe essentially Google is betting on that & I think it's probably the right strategy.