> The money didn’t influence his work, Mr. Heald said, and Google issued no conditions: “They said, ‘If you take this $20,000 and open up a doughnut shop with it—we’ll never give you any more money—but that’s fine.’” At a glance, this seems like the funds are no-strings-attached. But when you think for a minute, you realize it's the exact opposite. Google is saying that if they don't like what you do with the money,…
Also, Google grants, oddly, are actually less intellectually restrictive than NSF grants. Sure, neither type of grant places any restriction, but there is actually more of a chilling effect of the NSF process than the Google one. The process Google uses for giving out grants is if there is a senior engineer or two who like your proposal, you get some funds (I'm simplifying a bit, but it's actually not much more complex than that). The NSF, on the other hand, is much more likely to consider things that I think most folks would agree shouldn't be considered, such as the political views of senior government officials.
I don't deny that Google has engineers more interested in certain problems than others, but the work that gets funded results in open research papers, so people are free to look at the work even if they don't work at Google. And that's better than Google just hiring the researchers -- as they and many other companies do -- and keeping the work for themselves.