Google Inc. (NASDAQ:GOOG) has bought out AppJet, a company that created a service called EtherPad. Several former Google executives such as Aaron Iba, J.D. Zamfirescu, and Daniel Clemens are currently working at AppJet. EtherPad works very similarly to Google Docs but it works better in real-time.

Changes made to documents on EtherPad are updated in real-time and the editors can chat on the same page. Google may roll EtherPad into Google Wave and/or Google Docs. AppJet was part of Y-Combinator and raised $700,000 in seed funding. AppJet is based at Pier 38 in San Francisco, California.