No, he is very clearly referring to Greenwald's PRISM fantasy. From the article: "Caught red-handed last year making petabytes of personal data available to the U.S. intelligence community through the PRISM program...."
The original story tries to implicate Google in opening their servers for "full take" data feed.
XKeyscore was a program to analyse data siphoned from wiretaps. This is what caused that infamous ppt slide "SSL Removed Here ;-)" which, among other reasons, caused Google to start encrypting all of the inter-data center links.
You are arguing about a program that has nothing to do with Assange's thesis that Google is an arm of the US State Department. This isn't merely semantics.