If you thought Chrome was only a browser created by Google you are so last month. (If you thought chrome was only a metal you are so 2008.) On July 7, 2009 Google announced the development of the Chrome OS (Operating System). Google expects Chrome OS to be available in the second half of 2010.
I'm excited about Google Chrome because (1) it will be an open source project and (2) it is based on the Linux kernel.
According to Google, "the web is the platform" for applications. This marks a big paradigm shift to the way we normally look at computers. Google's goal is have all applications running on the web (like Gmail, Google Documents, etc).
To create an OS where applications only reside on the Web (instead of installing them) will ask a lot from consumers who are used the the traditional software model. Also, unless Microsoft produces a full-featured web version of Microsoft Office, I think corporations will be reluctant to make the switch to Chrome.
You can read Google's full announcement here.
