Perplexity AI Makes Bold $34.5 Billion Bid for Google Chrome

Perplexity AI has submitted an unsolicited, all-cash offer of $34.5 billion for Google’s Chrome browser, aiming to challenge the tech giant’s dominance in web search. According to a report by the Wall Street Journal, this offer is significantly lower than Perplexity’s own valuation, estimated at $18 billion. The company has indicated that it has secured interest from several major venture capital funds to support this ambitious acquisition.

Acquiring Chrome would enhance Perplexity’s competitive edge against rivals, including OpenAI. Currently, Perplexity operates an AI browser called Comet. The report from Reuters highlights that the company has committed to maintaining the underlying Chromium browser code as open source, investing $3 billion over the next two years, and keeping Chrome’s default search engine unchanged.

The bid follows a tumultuous period for Google, as the US Department of Justice has previously suggested that the company should divest Chrome to restore competition in the search market. Google has not expressed any intention to sell the browser and plans to appeal a court ruling that identified it as maintaining a monopoly. An appeals judge is expected to issue a ruling this month regarding competition in the search sector.

Estimates of Chrome’s enterprise value vary widely, with figures ranging from $20 billion to $50 billion. Perplexity’s offer may signal to the appeals court judge that there is a viable buyer willing to take over, should a forced sale occur. The Wall Street Journal reported that Perplexity reached out to Google and Alphabet CEO Sundar Pichai, stating that their proposal for Chrome aims to satisfy public interest and antitrust remedies by placing the browser under the management of a capable, independent operator.

Data analysis by DemandSage reveals that Chrome boasts approximately 3.5 billion users worldwide, commanding a substantial 63 percent share of the global browser market. This dominance underscores the browser’s significance in the digital landscape.

Earlier this year, Perplexity made headlines with an offer to acquire a 50 percent stake in ByteDance’s TikTok assets in the United States, showcasing its aggressive approach in the technology sector. As the landscape of online browsing and search continues to evolve, Perplexity’s bold bid for Chrome could have significant implications for both the company and the broader market.