It is solving a very real problem created by the existence of Silicon Valley.
Silicon Valley creates a perfect maelstrom of isolation and loneliness. You have thousands of new people move there every year to find work, and moving tears off a huge chunk of your social network. Even if you manage to keep in touch with some people, you lose the entire portion related to "casually hanging out with your friends and talking about your day". Meanwhile, Silicon Valley is a figurative desert of office parks and suburbs, making it difficult to do anything but work.
Companies like Google (and many before, and many after) solved this problem by creating campuses where their employees could eat, hang out, exercise, play games, and socialize. Their otherwise isolated employees formed new social networks, were happier, more productive, and less likely to leave. It solved many problems, but it also created the other problems that stem from "our employees' work and social lives are too entangled".