Perplexity AI, the artificial intelligence search startup valued at around $18 billion, has made an unsolicited all-cash offer of $34.5 billion to acquire Google's Chrome browser. The bold bid comes as the tech giant faces mounting pressure from US antitrust regulators who may force it to divest Chrome as part of remedies to address anti-competitive practices.
The proposal, which exceeds Perplexity's own current valuation by nearly double, includes a commitment to invest $3 billion over two years to support Chrome and the underlying Chromium engine. The company has pledged to maintain Chrome as an open-source project, keep Google as the default search engine, and ensure minimal disruption to the browser's estimated 3 billion users worldwide.
Federal judge Amit Mehta is currently deliberating on potential remedies following his ruling that Google maintains an illegal monopoly in search. Chrome divestiture emerged as one possible solution, though Google has strongly opposed the measure, arguing it would harm innovation, create national security risks, and disrupt business operations.
Perplexity claims to have secured backing from major investors including SoftBank, Nvidia, and Amazon founder Jeff Bezos to fully finance the acquisition. The move mirrors the startup's earlier high-profile attempt to acquire TikTok in January, suggesting a pattern of leveraging regulatory uncertainty for strategic positioning.
Industry analysts remain sceptical about the likelihood of any Chrome divestiture. Most expect regulatory remedies to focus on restricting Google's default search agreements with device manufacturers rather than forcing asset sales. Some valuations place Chrome's worth at over $50 billion, making Perplexity's offer potentially insufficient even if Google were compelled to sell.
The bid highlights the broader tensions in the tech industry as AI startups seek to challenge established players. Perplexity has positioned itself as an alternative to traditional search engines by combining generative AI with real-time web data, though it has faced criticism over content attribution and potential copyright issues.
Google continues to push back against proposed remedies in court, advocating for less severe measures that would modify its search exclusivity deals rather than force structural changes. The final decision on remedies is expected in the coming months, with any implementation likely facing years of legal challenges regardless of the outcome.