The http://www.nyquistcapital.com/2007/11/16/googles-secret-10gbe-switch/ rumour was initially launched by NyQuist Capital which found out a huge discrepancy in the number of network components used and the actual number of network devices manufactured.
It is not the first time, Google used its massive influence to change the way things are being done in the hardware segment.
Last year, Google called for Power Supply Design changes in order to improve on power consumption, mainly because of financial concerns over the cost of provisioning electricity and for cooling servers.
Before that, Google's founders, called on the industry to adopt a single power supply standard for mobile devices like phones or PDA's and Google produces its own server (around 500,000) rather than relying on third parties.
This time around, Google is said to be producing 10GbE switches en masse after suppliers were not able to meet Google's demanding features.
Some of the main points of the reports are
(a) Google's Switch uses Broadcom 20-port 10GE switch silicon (BCM56800) & SFP+ based interconnect.
(b) The device uses Google's proprietary in-house designs to meet its specific needs, meaning that you won't be able to buy one off the shelf anytime soon
(c) Andrew Schmitt, the author of the blog posts, estimates that Google might be using about 60,000 ports per annum, which is rather low given that Google has roughly 1/2 million servers.