Jobs and Schmidt, whose companies have just ended their love affair, were spotted minutes ago talking business at Calafia in the Town and Country shopping centre in Palo Alto. They were talking business. Update: That's not an iPad.
Our tipster saw em and snapped these shots, and noted that the cafe is owned and operated by former google chef Charlie Ayers. Overheard from the conversation were two lines by Jobs. Enthusiastically, "They're going to see it all eventually so who cares how they get it." Which seemed to be about web content, said the tipster. And, "Let's go discuss this somewhere more private", after they noticed the crowd gathering around. I think that was probably a wise move. Schmidt was very quiet, listening, and Jobs was doing a lot of the talking. What do you make of the body language?
The fact they'd meet in a neutral place like this implies, although does not prove, they chose a public place for its neutrality. Or they just wanted coffee and inevitably started talking shop, albeit in public. But since when do billionaires have to step out for coffee? The only thing that adds up is that neither felt comfortable meeting at each other's HQs, and this is the start of talks that will inevitably be tense for both sides.
I'd assume the coffee was not poisoned. [Thanks Tipster Z. Kudos on asking Jobs if he wanted to comment for Gizmodo too, even if his reply was a smile and "No thanks."]