Perplexity AI’s $34.5B Google Chrome Bid Shakes Tech Industry
On August 12, Perplexity AI shocked the technology and investment world by making a $34.5 billion all-cash offer for Google’s Chrome browser, a move far exceeding the startup’s own market valuation. The three-year-old company, founded by Aravind Srinivas, is looking to acquire one of the most widely used web browsers in the world, boasting over three billion users.
The unsolicited proposal comes despite Google not offering Chrome for sale. Analysts see it as a bold play to capture billions of search-related data points and user interactions that are critical in the AI-powered search race.
A History of Ambitious Moves
Perplexity AI is no stranger to big, headline-grabbing offers. Earlier in January, it proposed a merger with TikTok’s U.S. operations to address national security concerns over Chinese ownership. Now, its sights are set on Google Chrome, a key gateway to global search traffic.
The company’s ambitions are supported by notable backers, including Nvidia and Japan’s SoftBank. With around $1 billion raised so far, Perplexity is valued at about $14 billion—less than half the value of its current bid for Chrome. The startup claims multiple funds are willing to fully finance the acquisition, though no specific investors have been named.
Why Chrome Is a Strategic Prize
Web browsers are once again becoming central to the AI competition. As AI-driven assistants like ChatGPT and Perplexity reshape how people search for information, browsers serve as crucial gateways for user engagement and data collection.
Perplexity already offers its own AI browser, Comet, which can perform automated tasks for users. Acquiring Chrome would instantly give the company unprecedented reach and strengthen its position against AI competitors, including OpenAI, which is also working on its own browser.
Keeping Chromium Open and User-Friendly
According to a term sheet obtained by Reuters, Perplexity has pledged to keep Chrome’s core code—Chromium—open source. Additionally, it promises to invest $3 billion in Chrome’s development over the next two years while retaining Google’s search engine as the default.
The company argues that the acquisition would enhance user choice, maintain market competition, and prevent monopolistic control in the browser and search ecosystem.
Regulatory and Legal Hurdles Ahead
Despite the offer, Google is unlikely to part with Chrome easily. The browser is a cornerstone of its AI-driven search strategy, including recent features like AI-generated “Overviews” designed to defend market share against emerging competitors.
The U.S. Department of Justice has previously sought Chrome’s divestiture as part of remedies in the antitrust case against Google. A ruling from Judge Amit Mehta on potential remedies is expected later this month. However, legal experts suggest a forced sale could take years, with multiple appeals likely, including possible escalation to the Supreme Court.
Market Valuation Dispute
Perplexity’s $34.5 billion bid is well below the $50 billion figure suggested by Gabriel Weinberg, CEO of rival search engine DuckDuckGo, as Chrome’s potential value if forced into a sale. Analysts remain skeptical about whether Google or regulators would even entertain Perplexity’s offer, citing Chrome’s deep integration into Google’s business model.
The Bigger Picture
Whether successful or not, the offer signals Perplexity AI’s determination to challenge tech giants head-on in the race for AI search dominance. Chrome’s massive user base, combined with Perplexity’s AI capabilities, could transform the way people interact with the internet—if the deal ever becomes reality.
Read more bold tech moves shaping the future of AI in top business magazine IMPAAKT.
