Proper encryption means the ciphertext is indistinguishable from noise. So...in order to be able to process on it, you have to make it not indistinguishable from noise.
So I take offense to the term FHE. It's a oxymoron.
The whole thing immidiatly stands out as a sham to build trust where it's gone.
they could have gone with an oblivious transfer approach (where it's working on what looks like multiple problems at once, you don't know which)
Eh? With secret sharing one can do computation on a shared secret where it is provable that no individual party can recover any information about the data with their share alone.
I don’t see why you conclude that FHE couldn’t be close to as secure as that. (Like, not information theoretically, but with computationally bounded adversaries.)
No, that’s not what proper encryption means. Security for encryption means that cipher texts encrypting distinct messages are indistinguishable. This is called IND-CPA, and FHE satisfies this.
This is actually the magic of FHE. The ciphertext is indistinguishable from noise AND can be computed on, it just looks like different noise.
If you believe the underlying cryptographic hardness assumption of LWE/RLWE/etc, then yes Google cannot see any of the input or output of the model.