Perplexity Offers $34.5 Billion to Acquire Google Chrome, Challenging Tech Titan in AI-Powered Search Battle
Tech startup Perplexity has proposed a $34.5 billion purchase of Google’s Chrome browser, marking a significant challenge to the internet giant’s dominant search business. The unsolicited bid comes amid ongoing legal proceedings against Google for violating US antitrust law.
Perplexity’s spokesperson, Jesse Dwyer, confirmed the offer details to CNN, following an initial report by The Wall Street Journal. Google has yet to comment on the matter.
The proposed acquisition follows a court ruling last year that found Google had breached US antitrust laws with its search business. The US Department of Justice suggested Google sell its Chrome browser as a potential remedy, a proposal Google has vowed to contest and described as detrimental to consumers and security.
Perplexity, a three-year-old startup, specializes in AI-powered search tools that parse web content and curate answers. The company launched an AI search engine competing with Google’s dominant offering in December 2022 and unveiled its own AI-driven browser, Comet, in July.
Should the acquisition of Chrome materialize, Perplexity plans to maintain users’ current browsing preferences, including Google as the default search engine. The company also intends to commit to a decade of continued support for Chrome and invest $3 billion in Chromium over the next two years, according to Dwyer.
Perplexity values its own worth at approximately $18 billion, following a recent funding round. Acquiring Google Chrome would represent nearly double its current valuation. Google’s market capitalization stands at around $2.5 trillion, with its shares (GOOGL) increasing by about 1% on Tuesday. Several venture capital firms are said to be backing the purchase, according to reports.
Wedbush tech analyst Dan Ives told CNN that this move by Perplexity is strategic and opportunistic given Google’s antitrust case and regulatory scrutiny. Ives estimates Chrome to be worth at least $50 billion.
In addition to its bid for Chrome, Perplexity has expressed interest in purchasing TikTok following a law mandating the social media app’s parent company, ByteDance, to sell it to a non-China-based firm or face a US ban. Reports suggest that both Meta and Apple have discussed potential acquisitions of Perplexity. However, the status of these talks remains unclear.