Reports are that Google will commit about $100MM to the fund. According to their blog post, they plan on investing in other sectors than just Internet and software:
We’ll be focusing on early stage investments across a diverse range of industries, including consumer Internet, software, clean-tech, bio-tech, health care and, no doubt, other areas we haven’t thought of yet.
During the rumors in July 2008, Fred Wilson wrote a great piece about why Google SHOULDN’T launch a venture capital arm. It’s a great read about why venture capital returns aren’t fit for large corporations like Google.
Check out the new Google Ventures Website here.