While everyone is Twitter crazy they are missing a big battle between Google and Apple.

Google throwing the kitchen sink at Apple in the fight to gain leadership in all things web and all things mobile. According to a source just last month Google stole AdMob from Apple and then tried to do some late night bidding for LaLa but lost to Apple. There is no way Apple will let Google get that music library.

We are seeing an epic battle between Google and Apple right here in my backyard of Silicon Valley. Here is what just went down between Apple and Google. Google outbid AdMob from Apple in what was described as a last minute "corp dev haymaker" by Google to steal AdMob away from Apple. Then just last week after Apple had LaLa locked in Google made a last minute play to steal them from Apple.

AllThingsD MediaMemo has some insights into the numbers on LaLa Apple price, but the big story is the bidding battle between Google and Apple.

The Angle: It’s all about the cloud and mobile. This is the real battleground and big areas of opportunities for startups.

The battle continues today as Google tries to advance more of it’s assets to a mobile and location based product offering.

Today, Google is announcing relevance for the real time web. They are sharing new innovations in the areas of real-time, mobile and social search that we feel are important steps in the evolution of information access.

Google’s main announcement is the innovation around real time search and "shortcuts" to information which is perfect for mobile users. Additionally, Google is announcing partnerships with Facebook and MySpace for search on status updates from fan pages.

I’ve been saying for some time now that real time search startups are doomed to fail. However this announcement from Google sets the stage for the where the ‘real time battleground" exists – cloud and mobile.

It’s been clear to me for sometime that real time updates is just a feature of search and any startup focusing on that will fail. Where real time search is relevant is the mobile web. The mobile web (I’m talking about smartphones) is where Google is battling (not Microsoft but) Apple.

Here are some nice datapoints from the Google announcement:

According to Google from their announcement.

Search is a natural starting point for discovering the world’s information, and we strive to bring you the freshest, most comprehensive and relevant search results over an ever expanding universe of content on the multitude of devices you use to access it.

Now, immediately after conducting a search, you can see live updates from people on popular sites like Twitter and FriendFeed, as well as headlines from news and blog posts published just seconds before.

Try searching for your favorite TV show, sporting event or the latest development on a recent government bill. Whether it’s an eyewitness tweet, a breaking news story or a fresh blog post, you can find it on Google right after it’s published on the web.

The first trend we’re seeing. Moore’s law. Next year the devices you have will be faster than ever. The second trend we’re seeing is far more recent. Connectivity. A decade and a half ago, if someone came to you and said there’s a time that’s coming when they said every device would be connected to every other device. We’re seeing the emergence of powerful clouds. Huge amounts of computer resources devs have at their disposal.

As part of Google’s launch of real-time on search, they’ve added "hot topics" to Google Trends to show the most common topics people are publishing to the web in real-time.

With the growth of Android expect Google to continue the pressure on going after Apple. Remember it’s the battle in the cloud and mobile area that will see the most action this year for both startups and exits.

It’s exciting to see both Google and Apple go head to head.