Google recently hired some new employees: a former Sun Java-developer, four people who worked on the development of Microsoft's Internet Explorer and Joe Beda, who had an important role in the development of Avalon which is the codename for Microsoft's Longhorn user interface
Analysts suspect that this could be an indication that Google is buzy developing a new web browser. But others think big G is developing populair internet products like an online music store or IM software.
The rumours that Google is developing an internet browser are based by the following things: In August for instance Google was host for the Mozilla Developer Day. Another possible indictation is bug n°226572 at Bugzilla. It had the title "Google Branded Mozilla browser" , and the latest bugnote said it was about a double placed bug regarding a cooperation with Google. Currently it is not accessible anymore.
Analysts think that the chance is very real that Google will soon release a line of new products aimed at competitors like Microsoft.
According to NY Post it could even be that Google is developing a complete platform of webservices. They browser would be the mainpart of the packet which incorporates other services as Google Search, Google Images and Gmail.
And the last possible indictation is that Google has registrated the domain Gbrowser.com, Gbrowser.net and Gbrowser.org