AI search firm Perplexity makes $34.5 billion surprise bid for Google Chrome

In a surprising twist in the tech world, artificial intelligence search company Perplexity has put forth an unsolicited offer of $34.5 billion to acquire Google’s Chrome browser. This ambitious bid positions Perplexity as a significant challenger to Google’s dominance in online search, aiming to transform how users access information on the web. A spokesperson for Perplexity confirmed the details of the offer following a report by The Wall Street Journal. The timing of this bold move is notable, as Google is currently awaiting a court decision after a landmark ruling last year determined that the tech giant had breached US antitrust laws concerning its search operations. In response, the US Justice Department has suggested that Google divest its Chrome browser, a proposal that Google has vehemently opposed, labeling it an "unprecedented proposal" that could endanger consumer security. While Perplexity's bid appears to be a long shot given Google's resistance to selling Chrome, it underscores the growing trend of emerging companies challenging the established tech giants as they navigate the evolving landscape of artificial intelligence. Founded nearly three years ago, Perplexity leverages AI models to analyze web content and deliver curated responses. Its AI search engine, which launched in December 2022, directly competes with Google’s market-leading service. Additionally, Perplexity introduced its AI-powered web browser named Comet in July, promoting it as a more personalized browsing experience that integrates users’ calendars, tabs, and social connections. In a further indication of the shifting dynamics in the tech industry, reports suggest that OpenAI is also investigating the development of its own web browser. Perplexity's recent valuation stood at approximately $18 billion after a $100 million funding round, meaning its offer for Chrome is nearly double its worth. In stark contrast, Google’s market value is estimated at nearly $2.5 trillion, with its shares experiencing a modest increase of around 1% on Tuesday. Beyond Chrome, Perplexity has also expressed interest in acquiring TikTok, following laws mandating that the app’s parent company, ByteDance, divest it to a non-China-based entity or face a ban in the US. Moreover, major tech companies like Meta and Apple have shown interest in Perplexity, engaging in discussions about a potential acquisition, though the outcome of these talks remains uncertain. This story is developing and will be updated as more information becomes available.