The AI startup, valued at less than half its offer, aims to grab Chrome’s three billion users in a bold move that could reshape the browser wars and AI search dominance. (Image Credits: Reuters)
Entering as a wildcard entry for AI search supremacy, Perplexity AI has made a $34.5 billion all-cash offer to acquire Google’s Chrome browser, despite the browser not being up for sale. Perplexity's own $14 billion valuation is dwarfed by the offer, indicating the company's willingness to take on previously unheard-of risks in order to gain billions of daily users.
Led by CEO Aravind Srinivas, Perplexity has a history of audacious deals. Earlier this year, it floated a merger proposal for TikTok US to address national security concerns about Chinese ownership. Now, it’s aiming to take over one of Google’s crown jewels amid mounting regulatory pressure on the tech giant.
Chrome’s future has come under scrutiny after a U.S. court ruled Google held an unlawful monopoly in online search. The Department of Justice has suggested Chrome’s divestiture as a potential remedy. While Google plans to appeal the ruling, antitrust watchers say any enforced sale could trigger a long legal battle, possibly stretching to the Supreme Court.
Herbert Hovenkamp, a professor at the University of Pennsylvania Carey Law School, noted:
“It’s very possible a sale wouldn’t be required until appeals play out, a process that could take years.”
Perplexity already operates an AI-driven browser called Comet, which performs tasks on behalf of users. Acquiring Chrome would instantly give the startup access to over three billion active users worldwide, dramatically increasing its leverage against competitors like OpenAI, which is also developing an AI browser.
According to a term sheet reviewed by Reuters, Perplexity has promised to:
The company claims multiple unnamed investment funds are prepared to finance the deal in full.
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The Stakes: AI Search, User Data, and Browser Dominance
As a new generation of users increasingly turns to AI chatbots like ChatGPT and Perplexity for answers, control over the web browser gateway has become strategic gold. With features like AI-generated search summaries (Overviews), Chrome is already essential to Google's AI drive. It is still a vital tool for directing traffic and collecting useful user data.
Industry analysts remain skeptical that Alphabet would ever part with Chrome voluntarily. Gabriel Weinberg, CEO of rival search engine DuckDuckGo, has pegged Chrome’s worth at $50 billion or more if regulators forced a sale, far higher than Perplexity’s offer.
Google has yet to comment on the bid. With the antitrust ruling’s remedies expected from Judge Amit Mehta this month, the tech industry is watching closely to see whether Perplexity’s surprise offer is a game-changing move, or a headline-grabbing long shot destined for the archives.
