Perplexity AI Makes Bold $34.5 Billion Offer for Chrome
Perplexity AI has made a $34.5 billion all-cash offer to acquire Alphabet’s Chrome browser, a move that significantly exceeds its own valuation. The bold proposal aims to capture Chrome’s billions of users, which are vital in the accelerating AI search race. Run by Aravind Srinivas, the company has previously made attention-grabbing bids, including an offer for TikTok US in January.
Moreover, the offer comes as OpenAI, Yahoo, and Apollo Global Management also express interest in acquiring Chrome. Regulatory pressure has intensified on Google, with a U.S. court ruling last year finding it held an unlawful monopoly in online search. Consequently, the Justice Department has sought a Chrome divestiture as part of the case’s remedies.
Funding Plans and Strategic Goals
Importantly, Perplexity has not disclosed exactly how it plans to fund the deal. However, the company has raised around $1 billion from investors such as Nvidia and SoftBank, and multiple funds have offered to finance the purchase in full. At its last valuation of $14 billion, Perplexity’s bid represents a striking leap in ambition.
Additionally, the startup already operates an AI browser called Comet, which can perform certain tasks for users. Therefore, acquiring Chrome could give it access to over three billion users worldwide, allowing it to better compete with AI leaders like OpenAI. The offer also promises to keep the Chromium code open source, invest $3 billion over two years, and maintain Chrome’s default search engine settings.
Legal Hurdles and Market Outlook
Nevertheless, analysts believe Google is unlikely to sell Chrome and would likely fight such a move in court. Given Chrome’s importance to Google’s AI strategy, the company is expected to resist any divestiture. Furthermore, AI-powered features such as search summaries, known as Overviews, are seen as critical to maintaining market share.
Looking ahead, a federal judge is expected to rule on remedies in the Google search antitrust case later this month. Yet, legal experts caution that any forced sale could be delayed for years by appeals. For instance, Herbert Hovenkamp, professor at the University of Pennsylvania Carey Law School, noted that the DC Circuit is skeptical of forced divestitures, and the matter could even reach the Supreme Court.
Finally, some industry voices believe Chrome could be worth much more. DuckDuckGo’s CEO, Gabriel Weinberg, has suggested its value may exceed $50 billion if a sale ever became mandatory.
