Perplexity AI has made a surprise $34.5 billion all-cash offer for Google’s Chrome browser, a bid that far exceeds the startup’s current valuation and signals its ambition to gain a foothold in the AI-powered search market. The offer comes as Perplexity seeks to tap into Chrome’s more than three billion users, a vital asset in the race to dominate the rapidly evolving AI search space, reports Reuters.
Run by founder Aravind Srinivas, Perplexity is no stranger to high-profile proposals. Earlier this year, the company made an unsolicited bid to merge with TikTok US in an attempt to address U.S. concerns over the app's Chinese ownership. Now, with its eyes set on Chrome, Perplexity aims to challenge industry giants in the AI and browser spaces.
The offer is especially bold considering Perplexity's own valuation of approximately $14 billion, making the $34.5 billion price tag a significant stretch. The startup has raised roughly $1 billion from investors, including Nvidia and Japan’s SoftBank, but did not disclose how it intends to fund the deal. Perplexity claims that multiple funds are prepared to finance the transaction in full, though no names have been disclosed. Alphabet's stock rose 1.6% in response to the news.
As artificial intelligence becomes a central player in the search market, web browsers are once again being recognized as key gateways to both user data and search traffic. Perplexity’s interest in acquiring Chrome underscores the growing value of browsers as pivotal platforms for AI integration, particularly as tools like ChatGPT and Perplexity’s own AI browser, Comet, draw users away from traditional search engines.
For Perplexity, acquiring Chrome would give it a massive user base and the infrastructure needed to better compete with established players like OpenAI. ChatGPT's parent company is already working on its own AI browser, further intensifying the battle for control over the future of search.
Perplexity has outlined key terms for its offer, including a commitment to keep Chrome’s underlying code, Chromium, open source. Additionally, the company pledged to invest $3 billion over two years into the browser and emphasized that it would make no immediate changes to Chrome’s default search engine. This move is meant to preserve user choice and address potential antitrust concerns, as highlighted in a term sheet reviewed by Reuters.
The company’s offer, which contains no equity component, is designed to avoid the regulatory challenges typically associated with acquisitions of this scale. However, analysts believe Google is unlikely to sell Chrome, given its critical role in the company’s AI strategy. Google has been integrating AI features, such as AI-generated search summaries, to strengthen its search market dominance.
Google has not commented publicly on Perplexity’s offer, and it has not shown any indication that it plans to sell Chrome. The company is already embroiled in antitrust litigation, with the U.S. Justice Department pushing for a divestiture of Chrome as part of its ongoing legal battle against Google’s alleged monopoly in online search. A U.S. federal judge, Amit Mehta, is expected to rule on remedies in the case later this month, but the process could stretch out for years as it moves through appeals.
Herbert Hovenkamp, a law professor at the University of Pennsylvania, noted, "It’s likely that the appeals process will delay any decision on a Chrome sale. If the case moves to the DC Circuit and possibly even to the Supreme Court, it could take several years to resolve."
Despite the boldness of Perplexity’s offer, some analysts believe it is undervalued. DuckDuckGo’s CEO, Gabriel Weinberg, previously suggested that Chrome could be worth over $50 billion if Google were forced to sell it due to antitrust pressures.
For now, Perplexity’s ambitious bid has put the spotlight on Chrome’s future. While the chances of a sale remain uncertain, the move underscores the increasing competition and shifting dynamics in both the AI and browser industries.
Bd-pratidin English/ Jisan
