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They made T5 and released the weights, while T5 "only" goes up to 11B params, it's an efficient model for a wide variety of tasks and the base for a lot of other models/projects. Of note imagen[1] and open-assistant[2] use T5 and FlanT5.
[1] https://arxiv.org/abs/2205.11487
[2] https://github.com/LAION-AI/Open-Assistant
Google made lots of half baked products before and terminated them when they didn't work as expected (https://killedbygoogle.com/).
I agree with some of your points regarding scalability and add the fact that Transformer architecture (which GPT-3 was trained on) was created at Google. They also have all the data in the world to train a better model.
Interesting to see what Google will come up with.