From the Guardian's blog (the Guardian being that British newspaper):

Google browser rumours heat up


The longstanding rumour about a Google browser has bubbled up once again, this time backed up by some concrete evidence in the form of a web domain Gbrowser.com registered to Google. Jason Kottke sums up the story so far, here.

Rich Skrenta's post "The secret source of Google's power" is also required reading for anyone interested in Google's growing influence.