They just run it on photos stored on their servers. Microsoft, Apple, Amazon, and Dropbox also do the same. There are also employees in their security departments with the fkd up job of having to verify anything flagged then alert law enforcement.

Everyone always forgets that "cloud storage" means files are stored on someone else's machine. I don't think anyone, even soulless companies like Google or Microsoft want to be hosting CSAM. So it is understandable that they scan the contents of Google Photos or Microsoft OneDrive, even if they didn't have a legal obligation there is a moral one.