As expected the University of California is partnering with Google on the Google library scanning project. Reuters reports that Google will be funding "the scanning of "several million" of the 34 million titles in the University of California's libraries."
Postscript From Danny: The partnership means that UC becomes the first organization to my knowledge to partner with both major scanning programs from search engines. UC partnered with Microsoft on its project in June. UC is also part of the broader Open Content Alliance backed by both Microsoft and Yahoo.