Perplexity AI Makes $34.5B Bid for Google's Chrome Browser

• Perplexity AI offers $34.5 billion cash for Chrome amid regulatory push for Google divestiture.
• Google is unlikely to sell Chrome, critical for its AI-driven search and browser integration strategy.
• Multiple companies, including OpenAI and Yahoo, show interest if Google is forced to sell.

Perplexity AI has made a $34.5 billion unsolicited all-cash offer for Alphabet’s Chrome browser, a bold but low bid compared to its potential market value. Run by CEO Aravind Srinivas, the startup has a history of ambitious proposals, including a January offer to merge with TikTok US to address concerns over Chinese ownership.

By purchasing Chrome, Perplexity would have access to its three billion users, and strengthen its role as the Google giant falls subject to regulatory pressure due to its monopoly in the artificial intelligence search market. Even without Google putting Chrome up for sale, the Justice Department, in an antitrust case, has proposed that the company sell it off, a case, which Google intends to appeal against after last year's ruling, held the company had an illegal monopoly on searches.

Founded three years ago, Perplexity AI has raised about $1 billion from investors like Nvidia and SoftBank, with its latest valuation at $14 billion. The company has not revealed funding details for the bid, though a source said multiple funds have offered to fully finance the deal.

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The startup operates an AI browser, Comet, capable of performing tasks on users’ behalf. It has pledged to keep Chrome’s underlying Chromium code open source, invest $3 billion over two years, and retain Google as Chrome’s default search engine.

Browsers are once again becoming the key to search traffic and data on users, which drives the Big Tech ambitions of AI. Analysts are however skeptical about the sale of Chrome by Google, taking into consideration the centrality of the latter product in delivering AI functionalities like AI-generated search summaries, or AI Overviews.