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"I'm willing to bet that somewhere in the Google computer system are the seeds of a browser." - Gary Stein, an analyst with Jupiter Research.
Looks like Google is poaching some of the best minds from Microsoft in what could be an attempt to start work on its own browser to challenge IE. Many of the poached staff all have excellent experience in the field of browsers. Adam Bosworth, is credited with being a driving force not only behind IE, but Microsoft's database-management program, Access. Joe Beda is, or rather was, the lead developer on Avalon, the new interface for the next version of Windows, Longhorn.
Google has also been poaching from other companies, such as Sun Microsystems. They have hired Joshua Bloch, one of the main developers of the Internet programming language Java, from Sun Microsystems.
Please note that everything seems a little "hush hush" at the moment, and that nothing is confirmed. But a Google browser could seriously benefit the company, and ensure the continuance of Google as the largest and most popular search engine on the planet.