Google's MO since always has been to release great products or services for free, position themselves high and then abandon them or just find uses for Enterprise sales.

I'm pretty sure they are doing it because they get some research experience by shrinking and improving these models, and because they know that by doing this they get some good PR among the dev community.

Google's "free" is and was ad-supported, even if some products now have a paid tier. These models don't include ads. Doesn't seem like the same underlying reason