What happens when a three-year-old AI startup throws a $34.5 billion offer at the world’s most dominant web browser? That’s exactly what Perplexity AI, backed by Amazon’s Jeff Bezos and Nvidia, did by proposing to acquire Google Chrome.
The bid, shocking tech insiders, comes despite Chrome not being officially for sale and Perplexity itself being valued at roughly $18 billion, less than half the price it’s willing to pay.
Is Chrome Even for Sale?
A U.S. federal judge is expected to rule this month on whether Google must break up parts of its search business, an outcome that could include divesting Chrome. The search giant has said it would appeal such a ruling, calling the idea of spinning off Chrome an “unprecedented proposal” that would harm consumers and security. Chrome, with an estimated three billion users, is not just a browser, it’s a gateway to Google’s advertising empire and AI development pipeline.
A Perplexity spokesperson told the BBC that the offer represents an “important commitment to the open web, user choice, and continuity for everyone who has chosen Chrome.” The startup argues that moving Chrome to an independent operator committed to user safety would benefit the public.
Who Exactly Is Perplexity?
Founded in 2022, Perplexity is among the rising stars in the generative AI race, alongside OpenAI and Google’s Gemini. Its CEO, Aravind Srinivas, is a former Google and OpenAI employee. The company has made headlines before, most notably for offering to buy TikTok’s U.S. operations earlier this year, a $50 billion proposal linked to national security concerns.
Perplexity recently launched its AI-powered browser, Comet, and has drawn controversy for alleged copyright violations, yet its platform has grown rapidly. With 30 million active users and over 780 million monthly queries, the startup is carving a niche as a direct-answer AI alternative to traditional search engines.
Why Is Perplexity Paying Nearly Twice Its Worth?
Perplexity’s letter to Alphabet CEO Sundar Pichai describes the $34.5 billion bid as “designed to satisfy an antitrust remedy in highest public interest by placing Chrome with a capable, independent operator.” Several major venture capital funds have reportedly agreed to finance the purchase, although the company declined to name them.
The proposal promises to keep Chromium, the open-source codebase behind Chrome, Microsoft Edge, and Opera, freely available. It pledges to maintain Google as the default search engine while allowing users to change settings, invest $3 billion into Chrome and Chromium over the next two years, retain a significant portion of the workforce, and avoid stealth modifications that could impact users.
Why Does Chrome Matter So Much?
Chrome dominates the browser market, with more than 3 billion users and roughly 60% of global market share. Its integration with Google Search, controlling around 90% of global search traffic—provides a direct channel to user data that fuels both advertising and AI initiatives.
Browsers, once seen as mere tools, are now central in the AI landscape, acting as platforms for information, AI tools, and data collection. For Perplexity, gaining Chrome’s audience could instantly accelerate its AI ambitions, positioning the startup as a formidable rival to Google and OpenAI.
How Does This Tie Into the Antitrust Case?
Perplexity’s offer intersects with a major US antitrust case. In 2020, the Department of Justice sued Google, arguing that its exclusive deals with device manufacturers, carriers, and browser developers unlawfully reinforced its search dominance. U.S. District Judge Amit Mehta ruled last year that Google violated antitrust laws and is now considering remedies, including a potential Chrome divestment.
Selling Chrome, Mehta noted, could be “a little cleaner and a little bit more elegant” than other measures. Google, however, opposes this, warning that it could disrupt operations, deter investment, and compromise user security.
How Much Is Chrome Really Worth?
Analyst estimates vary, with valuations ranging from $20 billion to $50 billion. Gabriel Weinberg, CEO of DuckDuckGo, suggested Chrome could command at least $50 billion if divested. Perplexity’s $34.5 billion bid sits in the lower-middle of that range. While Alphabet hasn’t publicly commented, sources told the Financial Times that the company is not treating the offer as a serious proposition.
Could This Change the AI Race?
Acquiring Chrome would be transformative for Perplexity. Its Comet browser, built on Chromium, integrates AI features for tasks like online shopping, summarizing social media, and composing emails. Owning Chrome would give Perplexity access to billions of users overnight, massively scaling its AI offerings.
Google is simultaneously rolling out AI features like “Overviews” in search, with Chrome serving as the distribution channel. Analysts suggest that even with Perplexity’s offer, Google would be reluctant to sell voluntarily.
