I've always known that Google was an open source shop for the longest time. However, when rumors about a Google OS, and an online Google-Sun desktop suite (squashed under this article), I started having second thoughts... A Google empire, alongside the empire of Redmond... a scary thought indeed.
However, it was pointed out in this eweek article that no such things are happening.
"Google has no plans to release an operating system or an office suite."
They do support open source projects quite a lot (many of them in-house projects), like Open Office... and one of their recent additions was the developer of GAIM, to do further work on Google Talk.
Google... a benevolent giant?