They are increasing investment and are arguably the first "cloud" computing company to exist and offer a product to the public.
They might not catch up to the others but it'll still be a highly profitable product suite. I don't see what there is to worry about. GCP also includes Google Maps and GSuite by the way, which have lots of customers.
No it's not a sign that they're going to stop competing in one of the most profitable sectors that they've had an offering in for over a decade.