Yes, that's true. Google's goal is to organize the world's information for you. To organize it, they have to collect it. This makes them money because there's a lot of information out there, Google has a nice interface for searching it, and people will pay them (via their eyeballs currently) for that tool. The more information Google collects, the more convenient the product becomes, and the more value is generated. When you generate value, you generate money.
"Don't be evil" is not just marketing copy.