Will Google deliver its own dynamic language runtime?

It's been over a year since Microsoft announced its dynamic language runtime (DLR), a software layer on top of .Net that allows dynamic languages, like Ruby and Python, to integrate more tightly with Microsoft's core set of developer class libraries.

Microsoft first unveiled plans for the DLR at its Mix '07 conference. The DLR adds to the Common Language Runtime (CLR), the heart of .Net, a set of services that are particularly attuned to dynamic languages.

James Hamilton, whose signature identifies him these days as a member of the Microsoft "Data Center Futures Team," blogged on June 18 about the possibility of Google doing its own DLR:

"It’s hard to know for sure what is coming but the popular speculation is that Google will be announcing a dynamic language runtime with support for Python, JavaScript, and Java. A language runtime running on both server-side and client-side with support for a broad range of client devices including mobile phones would be pretty interesting."

Hamilton (via Microsoft's Jon Lam, of IronRuby fame) points to an upcoming speaking engagement by Google Tech Lead manager Lars Bak as clues about Google's intentions. From Bak's bio:

"Bak is a veteran of high performance object-oriented virtual machine development. He worked on the implementation of Self at Sun labs, was a core developer of the Java VM that became Sun's HotSpot. He was tech lead on the Monty VM, used as the VM behind Sun's CLDC (Connected Limited Device Configuration) technology for mobile phones."

Do you think Google's "Secret Project" with which Bak allegedly is involved is, indeed, a DLR for Java/JavaScript? Will Google and Microsoft soon be vying on yet another front -- this time, in the DLR spaces? Anyone out there been dabbling with Microsoft's DLR? Impressions?