AI startup Perplexity AI has made a surprise, unsolicited $34.5 billion all-cash offer to acquire Google's Chrome browser. This bold move comes amid increasing antitrust pressure on Google, with the US Department of Justice proposing the divestiture of Chrome as a remedy in a recent antitrust case. Perplexity aims to leverage Chrome's vast user base to gain an edge in the AI search race.
Perplexity's Ambitious Bid
Perplexity AI, a relatively young startup known for its AI-powered search engine, has thrown a significant curveball into the tech landscape with its substantial offer for Google Chrome. The $34.5 billion bid, confirmed by a Perplexity spokesperson, is an unsolicited proposal that aims to reshape the internet's navigation landscape. This move is particularly noteworthy as it comes at a time when Google is facing intense regulatory scrutiny over its search and advertising practices.
A Bold Play for Market Share: The acquisition of Chrome, with its over three billion users, would provide Perplexity with an immediate and massive user base, significantly boosting its position in the competitive AI search market.
The Antitrust Context
The timing of Perplexity's offer is strategic, coinciding with a critical juncture for Google. A US federal judge recently ruled that Google held an unlawful monopoly in online search. As part of the potential remedies, the Justice Department has suggested that Google divest its Chrome browser. Google, however, plans to appeal this ruling, labelling the idea of spinning off Chrome as an "unprecedented proposal" that could harm consumers and security.
Perplexity's Commitments and Valuation
Perplexity has stated that if its bid were successful, it would maintain users' current browsing preferences, including keeping Google as the default search engine, though users could change this. The company also pledged to invest $3 billion in Chromium, the open-source technology that underpins Chrome, over the next 24 months and to provide continued support for Chrome for 100 months. This offer is nearly double Perplexity's own valuation, which was recently estimated at $18 billion. Several investors, including large venture capital firms, have reportedly agreed to back the transaction.
Industry Reaction and Future Implications
Industry analysts have described the move as opportunistic, though some have labelled it a "stunt" and questioned whether the offer reflects Chrome's true value. The potential acquisition highlights the growing influence of AI companies and their strategies to challenge established tech giants. Perplexity has previously made headlines with an offer to buy TikTok's US operations and has reportedly attracted interest from other major tech players like Apple and Meta.
