In a move that has sent ripples through the tech world, AI startup Perplexity AI has submitted an unsolicited $34.5 billion cash bid for Google’s Chrome browser. The offer significantly exceeds Perplexity’s own valuation and signals the company’s ambitions to tap into Chrome’s vast user base, a critical asset in the competitive race for AI-powered search dominance.
Perplexity’s Ambitious Strategy
Founded by Aravind Srinivas, Perplexity has a history of eye-catching acquisition attempts. Earlier this year, the startup made headlines with a proposal to merge with TikTok US, aiming to resolve national security concerns over the app’s Chinese ownership. Now, the startup is setting its sights on one of the most widely used browsers in the world.
Interest in Chrome isn’t limited to Perplexity. OpenAI, Yahoo, and private equity firm Apollo Global Management have also reportedly explored possibilities, as regulators increase scrutiny over Google’s dominance in search.
Google, which has not publicly indicated any intent to sell Chrome, declined to comment to Reuters. The company is actively appealing a U.S. court ruling that found it maintains an unlawful monopoly over online search, with the Justice Department pushing for a potential Chrome divestiture as part of the remedy.
Funding Questions and Valuation Gap
Perplexity has not detailed exactly how it would finance the bid. The three-year-old startup has raised roughly $1 billion from investors including Nvidia and SoftBank and was last valued at $14 billion. Perplexity claimed that multiple funds have offered to finance the deal entirely, though it did not disclose their names. Following the news, Alphabet’s stock rose 1.6% in afternoon trading.
Browsers as the New Battleground for AI
As more users turn to AI-driven chatbots like ChatGPT and Perplexity for search, web browsers are emerging as critical gateways to both traffic and user data. Perplexity already offers its own AI-enabled browser, Comet, which performs tasks on behalf of users. Acquiring Chrome could give the startup access to more than three billion users, positioning it to challenge larger rivals, including OpenAI, which is also developing its own AI-integrated browser.
The startup has outlined plans to keep Chrome’s Chromium code open source, invest $3 billion over two years, and retain the browser’s default search engine. The offer is purely cash-based, with no equity component, and Perplexity emphasized that it would preserve user choice to alleviate potential competition concerns.
Google’s Likely Response and Legal Hurdles
Analysts predict that Google is unlikely to entertain a sale, as Chrome plays a central role in its AI strategy. The company is rolling out AI-powered features such as Overviews, which provide search summaries to defend its market share.
A federal judge, Amit Mehta, is expected to issue a ruling on remedies in the Google search antitrust case later this month. Experts, however, suggest any divestiture could take years due to appeals. Herbert Hovenkamp, a law professor at the University of Pennsylvania Carey Law School, noted, “It could go to the DC Circuit, which is skeptical of forced divestitures, and potentially even reach the Supreme Court. This process could take a couple of years.”
Perplexity’s bid is also lower than estimates from other industry figures. Gabriel Weinberg, CEO of DuckDuckGo, has suggested that Chrome could command a price of at least $50 billion if forced to sell.
