Comment by zmmmmm

It's probably a mix of things but I do think they are viewing "edge AI" as their strategic play: on-device, small efficient models (Android / iOS) and instant AI summaries in google search etc. So all of their focus is on delivering strong performance in a compute constrained environment.

I do think it's still also simultaneously true that they have an actual problem with competing with current frontier progress. It's just that has gone from an existential threat to something they are willing to defer addressing because they see the long game for them sitting at the smaller end.