Anybody inventing AGI would be a big deal, but (1) don't hold your breath and (2) it could just as easily be a negative for Google and for the rest of us.
And their core goal of truly autonomous vehicles is a technical challenge that at this point seems like it will take at least several years more than what they originally thought 3 years ago. Their situation is not similar to FB in 2008 at all.
Even if they overcome this the bigger question is whether the market opportunity is worth the R&D costs, and whether or not bulky self driving vehicles are the best and most lucrative solution to mass transit.
Speaking of market opportunity, are there SDVs being tested in outside of California and Arizona? The rest of the US gets its fair share of rain, snow, and ice. Even if the Bay Area can manage self-driving cars, when would we expect a rollout in places like Minneapolis or Boston?
Yes, there are. Off the top of my head, in the US:
Las Vegas (Aptiv), Pittsburgh (Aptiv, Aurora, Ford, Uber ATG), Dearborn MI (Ford), Miami (Ford), Washington (Ford). There's also a retirement community in Florida that Voyage is testing in.
Because of the elevation of parts of CA & AZ, it's absolutely possible to encounter snow and ice (and even whiteout conditions on interstate highways!) in those states, if you make the effort to find it. A smart testing team would make the effort to head for the mountains when the forecast calls for wintery weather.