The lead story that is sweaping the Internet today is:

"Search is Number Two Online Activity – Email is Number One; "Heck, Yeah," Say Google Founders " says the press release from Google on the second line.

The new server boasts 1GB cap per account on the free email service, also adding the power of Google's search engine so you can find any message you ever recieved.

More information beyond the press release can be found at gmail.google.com.

Update: From Doc Searls Weblog:

Cuz, like, I'm sure it's a joke, right? Right? I mean, it's April the Uno. Foolishness time.

But I just got a call from somebody on The Inside at Google.

GoogleInsider> Doc?
DocSearls> Yes.
GoogleInsider> It's not a joke.
DocSearls> You're kidding.
GoogleInsider> No. It's not a joke.
DocSearls> Holy shit.
GoogleInsider> I gotta go.
So, am I the only one who thought this was a joke?
No Doc your not, hence why my jaw is now on the floor. Doc points to the real Google April fools joke, which I caught as well via some other site.

The main reason I thought it was a joke is because Gmail doesn't appear in the Google Labs website, nor the Services site.

Update: Here is an image of Gmail in action: