Perplexity offers to buy Google's Chrome browser for $34.5 billion

In a surprising turn of events, AI startup Perplexity AI has launched an unsolicited bid of $34.5 billion for Google's Chrome browser, as confirmed by CNBC. This offer exceeds Perplexity's current valuation, but the company has secured backing from several investors to support the ambitious proposal. As of July, Perplexity was valued at $18 billion, having previously been assessed at $14 billion only months prior. Despite the magnitude of the offer, Google has yet to respond to inquiries from CNBC regarding the bid. The Wall Street Journal was the first to break the news of this substantial offer. Perplexity is primarily recognized for its innovative AI-driven search engine, which provides users with straightforward answers and directs them to original sources online. Recently, the startup also introduced its own AI-enhanced browser named Comet. The competition in the generative AI space is intensifying, with major players like Meta and OpenAI competing fiercely for top engineering talent, often offering lucrative salaries and signing bonuses. Large tech firms are investing significant resources—amounting to tens of billions of dollars annually—into AI infrastructure to develop large language models and manage extensive workloads. Concurrently, startups like Perplexity are attracting billions in funding from venture capitalists, hedge funds, and tech giants to finance their growth and operational needs. Earlier this year, Meta approached Perplexity regarding a potential acquisition, though the discussions did not culminate in a deal. The current bid from Perplexity follows a recent proposal from the U.S. Department of Justice, which suggested that Google divest its Chrome browser as part of an antitrust lawsuit in which the tech giant was found to have an illegal monopoly in the realm of internet search. The DOJ's filing indicated that stripping Google of its control over Chrome would facilitate a more equitable environment for competing search engines. "To remedy these harms, the [Initial Proposed Final Judgment] requires Google to divest Chrome, which will permanently stop Google's control of this critical search access point and allow rival search engines the ability to access the browser that for many users is a gateway to the internet," the DOJ stated. This story is still developing, and further updates are expected.