Artificial intelligence startup Perplexity AI has made an unsolicited $34.5 billion bid to acquire Google’s Chrome browser, positioning the offer as a potential solution to ongoing antitrust concerns facing the technology giant. The proposal comes amid heightened scrutiny of Google’s dominance in the search market, with a U.S. District Court ruling expected to determine whether the company will be ordered to divest Chrome.
Perplexity, valued at $18 billion in July following a recent funding extension, said the deal would be backed by commitments from venture investors. Chief Executive Aravind Srinivas described the offer in a letter to Google’s parent company Alphabet as an opportunity to place Chrome with an independent operator committed to preserving user choice and open web principles. Google has not commented publicly on the bid.
The Department of Justice has been pressing for the sale of Chrome as part of the remedy in an antitrust case the government won last year. The court determined that Google had maintained an illegal monopoly in the search market. Prosecutors have argued that Chrome, with an estimated three billion users, serves as a critical entry point to the internet and its separation from Google would give rival search engines a fairer chance to compete. Google has pushed back, calling the proposed remedy extreme and potentially harmful to consumer security.
Perplexity moves to acquire Chrome in high-stakes deal
Perplexity is a three-year-old firm backed by investors including Jeff Bezos and Nvidia. Known for its AI-powered search engine that delivers concise answers with source links, the company recently launched its own browser, Comet. Industry analysts have noted that acquiring Chrome could dramatically expand Perplexity’s reach, but also caution that the bid is far below what some estimate Chrome to be worth. Venture investor Tomasz Tunguz suggested Chrome could be valued at up to ten times Perplexity’s offer.
The company’s aggressive expansion strategy has previously included high-profile proposals, such as a January offer to merge with TikTok’s U.S. operations, which has yet to progress. In the case of Chrome, Perplexity has pledged to maintain Google as the default search engine while allowing users to adjust settings, and to continue support for Chromium, the open-source platform underpinning Chrome and other browsers like Microsoft Edge and Opera.
Critics label $34.5 billion bid far below true value
Some technology investors have characterized the $34.5 billion proposal as more symbolic than feasible, citing the disparity between Perplexity’s valuation and the scale of the deal. Critics have also raised questions about whether Chrome is even available for purchase, as Google is appealing the antitrust judgment and has proposed less sweeping changes to its business practices.
Founded in 2022 by AI researchers including Srinivas, a former Google and OpenAI employee, Perplexity has rapidly gained attention in the generative AI market. However, it has also faced controversy, including legal disputes with media organizations over alleged copyright violations. The Chrome bid underscores the company’s willingness to challenge industry leaders and position itself as a central player in the evolving competition for online search and browsing dominance. – By Content Syndication Services.