Perplexity AI Targets Google’s Crown Jewel with $34.5 Billion Bid for Chrome Browser

In a move that could shake up the race for AI-driven search dominance, Perplexity AI has launched an unsolicited $34.5 billion all-cash bid to acquire Google’s Chrome browser. Announced Tuesday, the offer dwarfs the startup’s own $14 billion valuation and underscores its determination to take control of a platform that serves as the gateway for billions of internet users.

Helmed by CEO Aravind Srinivas, the three-year-old AI company has developed a taste for high-profile gambits. Earlier this year, it put forward a proposal to merge with TikTok’s U.S. operations. operations in an effort to address political and security concerns over the app’s Chinese ownership. The bid for Chrome — the world’s most widely used browser, with more than three billion users — is its boldest swing yet.

The timing is significant. Google is under mounting regulatory pressure after a U.S. court last year found the company maintained an unlawful monopoly in online search. The Department of Justice has floated the idea of forcing Chrome’s divestiture as part of potential remedies. Although Google has pledged to appeal, the uncertainty has attracted other potential buyers, such as OpenAI, Yahoo, and private equity giant Apollo Global Management.

Perplexity, backed by major investors such as Nvidia and SoftBank, has so far raised about $1 billion. The company says it has secured full financing commitments from multiple unnamed funds. The market responded quickly, with Alphabet shares rising 1.6% in afternoon trading following the announcement.

A Browser at the Heart of the AI Race

Owning Chrome would give Perplexity control over one of the internet’s most critical distribution channels, positioning it to take on heavyweight rivals such as OpenAI. Perplexity already runs its own AI browser, Comet, but gaining Chrome’s vast user base would give it the scale to potentially transform the competitive landscape.

According to a term sheet reviewed by industry sources, Perplexity has pledged to keep Chromium — the open-source foundation of Chrome — freely available, invest $3 billion over two years, and retain Google as the default search engine. The company argues these steps would protect user choice and address antitrust concerns.

Even so, analysts doubt the deal will happen. Chrome is deeply integrated into Google’s broader AI strategy, including new “Overview” features that weave AI-generated summaries into search results. Surrendering the browser would equate to losing a significant strategic advantage.

Legal hurdles could also stretch the process out for years. “It’s very possible the judge would hold off on requiring a sale until the appeals process is worked out, and that could be a very lengthy period of time,” noted Herbert Hovenkamp, professor at the University of Pennsylvania Carey Law School. Any appeals could run through the D.C. Circuit and potentially reach the U.S. Supreme Court.

Adding to the challenge, Perplexity’s offer falls well below the $50 billion-plus valuation that DuckDuckGo CEO Gabriel Weinberg believes Chrome could command if it were ever put on the market.

Summary

Perplexity AI’s $34.5 billion bid for Chrome marks one of the most aggressive challenges yet to Google’s dominance. While the offer reflects the browser’s pivotal role in the AI era, Google’s resistance, legal complexities, and questions over valuation make a sale in the near future highly unlikely.

Frequently Asked Questions (FAQs)

1. What is Perplexity AI’s offer for Google Chrome?

Perplexity AI has made an unsolicited all-cash offer of $34.5 billion to acquire Google’s Chrome browser, aiming to gain access to its more than three billion users worldwide.

2. Why is Chrome important in the AI-driven search race?

Chrome is the world’s most widely used browser and serves as a crucial gateway for internet traffic. Control over Chrome would give Perplexity a massive distribution channel for its AI tools, helping it compete with major players like OpenAI.

3. Has Google indicated it will sell Chrome?

No. Google has not signaled any intention to sell Chrome and is expected to resist such a move, as the browser is integral to its search and AI strategy.

4. What prompted Perplexity to make this bid now?

The offer comes amid growing regulatory pressure on Google, following a U.S. court ruling that the company maintained an unlawful monopoly in online search. The Department of Justice has suggested Chrome’s divestiture as a possible remedy.

5. Who is backing Perplexity AI financially?

Perplexity is supported by high-profile investors, including Nvidia and SoftBank, and claims to have secured full financing commitments from several unnamed funds to cover the acquisition.

6. What is Perplexity’s current valuation compared to the bid?

Perplexity is valued at around $14 billion, less than half the amount of its $34.5 billion bid for Chrome, making the offer especially bold for such a young company.

7. What terms has Perplexity offered to address antitrust concerns?

The company has pledged to keep Chrome’s underlying open-source project, Chromium, freely available, invest $3 billion over two years, and retain Google as the default search engine.

8. How likely is the sale to happen?

Industry analysts believe the sale is unlikely in the short term, citing Google’s strategic reliance on Chrome and the lengthy legal battles that could follow any forced divestiture.

9. How long could legal proceedings take if regulators push for a sale?

Experts say appeals could extend the process for years, potentially reaching the U.S. Supreme Court before any sale is finalized.

10. How does Perplexity’s bid compare to Chrome’s estimated market value?

Perplexity’s $34.5 billion offer is below the $50 billion or more that some industry figures, such as DuckDuckGo CEO Gabriel Weinberg, believe Chrome could be worth.