Does anyone else, after having read this article, find that it isn't really about what the title suggests? There's no direct admission or direct quote from anyone at Google about what scares them.
The closest this article comes to telling us what scares Google is extrapolating that Google's slightly different method of developing products (fail fast, fail often) is a sign that they're scared. It's quite a stretch.
The Atlantic may be a venerable publication, but the title on this one sure looks like linkbait to me.