That was probably their low, and they've been catching up especially as the field has plateaued. They're making contracts to host LLM services, so they don't seem to be giving up, and the longer the plateau lasts, the less they'll be behind, unless they are slow to migrate to whatever the next step is.
Winning doesn't have to mean making the most money I hope. Maybe winning is paying homage to the years of organizing everyone's data and giving it back in the form of a highly optimized completely free capable model? Or am I too naive. Give a highly optimized code forge I can run on local affordable hardware and you will win in my eyes.
Giving away Gemma was the first time I thought google may have a heart after all. Or am I too naive.
New 3.5 Flash model is clearly quite optimized for speed. People on this site just look at benchmarks, and underestimate how vital speed is to user experience. No other free model comes close in terms of speed and intelligence, so it seems like the correct strategy to slowly win the mass market, as almost everyone will form their experience of AI through its free version.