AI-powered search startup Perplexity has thrown a bold punch at the heart of Google’s internet dominance, making an unsolicited $34.5 billion offer to buy the Chrome web browser.
The San Francisco-based company is looking to get ahead of a possible US government order that could force Google to sell the browser following antitrust proceedings.
According to Perplexity, the proposal was delivered to Google’s parent company, Alphabet, on Tuesday morning.
The startup, which has been positioning itself as an AI-driven alternative to Google Search, says it will fund the offer with backing from large investment funds, though it declined to name them.
The antitrust storm over Google
Google is currently in the crosshairs of US regulators after a federal judge ruled last year that the company has been illegally monopolizing the internet search market.
The US government has suggested drastic remedies, including forcing the sale of Chrome and licensing search data to rivals to prevent Google from locking out competitors.
While Google has vowed to appeal the ruling, the company is also pushing for a softer fix, such as tweaking its default search deals with Apple, Mozilla, and Android partners. These negotiations could stretch for months or even years before any divestment is enforced.
How serious is Perplexity’s offer?
According to Bloomberg’s report, industry analysts are skeptical about Perplexity’s offer. Colin Sebastian of Robert W. Baird & Co. believes Chrome is worth closer to $100 billion, calling Perplexity’s $34.5 billion bid a “vast undervaluation.”
- He also doubts regulators will force a spinoff, warning that breaking Chrome away from Google’s ecosystem could reduce quality, reliability, and user experience.
- Perplexity, however, insists it has the funds and a plan.
- The startup, recently valued at $18 billion after a $100 million fundraising round, says it would invest $3 billion over two years to grow Chrome and its open-source Chromium project, while retaining much of Chrome’s existing talent.
Perplexity’s bigger play in the browser wars
This is not the first time Perplexity has made a move ahead of a potential tech divestment. Earlier this year, it reportedly made a pitch to merge with TikTok’s US operations to avert a ban on the app.
The company is also preparing to launch its own browser, Comet, with built-in AI agents that can handle tasks like online shopping.
Perplexity says it would not make “stealth modifications” to Chrome, promising stability for both users and advertisers. Still, whether Google even considers the offer or whether regulators force its hand remains an open question.
