AI startup Perplexity offers $34.5 billion to buy Google’s Chrome Browser

In a bold move, Perplexity, an AI-driven search firm, has proposed an unsolicited bid of $34.5 billion to acquire Google’s widely used Chrome browser. This strategic offer arrives amid speculation about potential regulatory actions that may compel Google to divest its flagship product. The news, initially reported by The Wall Street Journal and Bloomberg, reveals that the proposal was directed to Alphabet, Google’s parent company, on Tuesday morning. The timing of this bid is particularly notable, as it follows recent interest from rival AI company OpenAI in the same asset. Chrome, coupled with its open-source counterpart, Chromium, remains the dominant browser for computer users. The backdrop to this acquisition attempt includes a federal ruling indicating that Google maintains an illegal monopoly in the internet search space. The U.S. government is currently exploring remedies that may include forcing Google to sell Chrome and license its search data to other companies. A decision from Judge Amit Mehta on the case's remedies is anticipated soon. Perplexity, valued at $18 billion following a $100 million funding round earlier this year, claims to have secured substantial financial backing from various large investment funds to support this acquisition. Dmitry Shevelenko, Perplexity's Chief Business Officer, affirmed that these funds are prepared to finance the transaction entirely. This is not the first ambitious maneuver from Perplexity; earlier this year, the startup made headlines with a proposal to merge with TikTok’s U.S. operations amidst potential bans. Looking ahead, Perplexity plans to launch its own AI-enhanced browser named Comet, and has committed to maintaining the integrity of Chrome’s existing software. The company stated, “We will not implement stealth modifications to the software, ensuring continuity and choice for users, and providing stability for Google and its advertisers.” If the acquisition moves forward, Perplexity has vowed to invest $3 billion into Chrome and Chromium over the next two years. Additionally, they intend to offer positions to a significant number of Chrome’s current employees. Notably, the company has stipulated that no equity in Perplexity would be included in the deal, a strategic choice aimed at circumventing potential antitrust issues.