I am not overly impressed with the smaller gemma models. And gemma 3 was a bit of a mixed bag, great at some things, bad at most others

That's my experience right now... my company is all in on a plethora of platform products. Also, Microsoft just yesterday said their goal was "Unmetered intelligence". There's a lot of things that can be enabled by small local models, and those things are part of stacks that can generate revenue in other layers.

So it's easier to just release those models as open source and make it official, since someone would inevitably hack the weights out anyway.

They rise with the tide of AI adoption. But they gain ground if people opt into Google solutions. And any token sent to a Google model (free or paid) actively punishes their competitors that are then required to spend vast sums to remain bleeding edge.

Eventually the local model is not enough, and you'll upgrade to the big ones.

If that inference becomes popular and valuable enough that those companies make billions of dollars in profit, those companies could use that profit to fund the building of alternative products and platforms that dis-intermediate google's relationship with the customer.

Google already has an 80% gross margin business, the biggest one in the world. Everybody wants a slice of it.

By offering frontier inference closer to cost and open-sourcing everything that's sub-frontier, they're commoditizing frontier labs' models, which inhibits their ability to durably make high gross margins on inference.

It's a strategic play.