Google announced the launch of Google Drive yesterday – a DropBox competitor.

Basically, Google is giving you 5GB of free storage with the ability to buy more storage, to store your files up in Google’s cloud. But it seems like unlike with DropBox where you own the files you have on their cloud, with Google, Google can use the files you upload to their cloud.

Here is a video demo of the service:

Google’s one size fits all terms of service applies to Google Drive and it reads:

In any event, it is live and I am sure a lot of people will start using it. I did just to test it.

Forum discussion at Google Blogoscoped Forums, WebmasterWorld and Google+.

Update: Here is a statement from Google: