Perplexity AI proposes takeover of Chrome in $34.5 billion challenge to Google

Perplexity AI has made headlines by proposing a staggering $34.5 billion cash offer to acquire Chrome from Google's parent company, Alphabet. This bold move comes as U.S. regulators are intensifying their antitrust efforts against the tech giant, which may compel it to divest its leading web browser. As a rising force in the artificial intelligence landscape, Perplexity AI aims to secure a position in one of the most popular internet platforms. Chrome has long been a vital asset for Google, significantly contributing to its advertising revenue, search capabilities, and data services. The acquisition proposal includes commitments to uphold the open-source nature of Chrome's underlying Chromium code, invest $3 billion over the next two years, and retain the current default search engine. Furthermore, Perplexity has indicated that the acquisition would be financed entirely through investment funds, avoiding the issuance of new shares. While no specific investors have been named, several funding sources have reportedly expressed their readiness to support this acquisition. Google has yet to publicly comment on the bid and has shown no inclination to part with Chrome, especially as it appeals a court ruling from the previous year that deemed its online search practices monopolistic. The U.S. Department of Justice has suggested divesting Chrome as a potential solution to the ongoing antitrust concerns, with a federal judge expected to issue a ruling soon. Analysts believe that Google will likely resist any enforced sale, given Chrome's integral role in its AI strategies, including the incorporation of AI-generated search summaries that enhance its market competitiveness. Founded just three years ago, Perplexity AI has successfully raised around $1 billion from notable investors like Nvidia and SoftBank, achieving a valuation of $14 billion. Its current AI browser, Comet, is engineered to perform tasks on behalf of users, and acquiring Chrome would significantly amplify its presence in the fiercely competitive AI-driven search market, where competitors like OpenAI, Yahoo, and Apollo Global Management are also vying for attention. DuckDuckGo's CEO, Gabriel Weinberg, has previously remarked that Chrome could command a price of at least $50 billion if sold under regulatory pressure, surpassing Perplexity's current offering. The situation remains dynamic, with significant implications for the tech landscape ahead.