Perplexity AI makes bold $34.5 billion offer to acquire Google Chrome amid antitrust scrutiny

In a move set to shake up Silicon Valley, Perplexity AI, a three-year-old artificial intelligence startup, has submitted an unsolicited all-cash bid of $34.5 billion to acquire Google Chrome, the world’s most popular web browser. The bid, significantly higher than the company’s current valuation of $14 billion, underscores Perplexity’s aggressive strategy to expand its footprint in the browser market, leveraging Chrome’s massive user base of over three billion people.

The offer arrives at a critical juncture for Google, which is facing mounting regulatory pressure over its alleged monopolistic practices in the search industry. Recently, a US court ruled that Google holds an unlawful monopoly in online search, with some legal experts suggesting that the forced divestiture of Chrome could be one of the remedies. Although Google has vowed to appeal the decision, Perplexity’s offer reflects the growing importance of web browsers in the AI search race.

Perplexity’s plan to keep Chrome open and invest $3 billion

Perplexity, which already develops an AI-powered browser named Comet, plans to keep Chrome’s underlying code, Chromium, open-source, thereby maintaining the browser’s integrity for developers and users alike. The startup also promises to invest $3 billion over the next two years to further enhance Chrome’s capabilities and continue its development. Importantly, Perplexity has pledged not to make any changes to the browser’s default search engine, which is currently Google Search, aiming to maintain stability for both users and advertisers.

The deal is structured to avoid antitrust concerns, as Perplexity’s offer does not involve any equity component in the company itself. According to a term sheet reviewed by Reuters, Perplexity would also commit to retaining a substantial portion of Chrome’s existing team to ensure a smooth transition and continuity of service. Several unnamed investment funds have reportedly agreed to fully finance the deal, signalling strong backing for the bold proposal.

Google’s response and legal hurdles ahead

Despite Perplexity’s ambitious offer, it remains unclear whether Google will entertain the proposal. The tech giant, which has consistently resisted calls for Chrome’s sale, is expected to engage in a prolonged legal battle to protect its interests. Legal experts suggest that the antitrust case could take several years to resolve, with the possibility of the matter ultimately reaching the US Supreme Court.

While Perplexity’s offer is likely a strategic move to ruffle Google’s feathers and make a play for the browser market, the stakes are high. A successful acquisition of Chrome could propel Perplexity into direct competition with some of the biggest names in AI, including OpenAI, which is also developing its own AI-powered browser. However, even if Google ultimately rejects the offer, Perplexity’s bold bid signals the growing prominence of web browsers in the next-generation AI landscape.

(With inputs from agencies)