AI startup Perplexity offers $34.5 billion to buy Google’s Chrome Browser

AI-powered search company Perplexity has submitted a $34.5 billion unsolicited bid to acquire Google’s Chrome browser, anticipating possible regulatory measures that could force the tech giant to divest the product. The bid has been reported by The Wall Street Journal and Bloomberg.

A Perplexity spokesperson told Bloomberg that the offer was sent to Google’s parent company, Alphabet, on Tuesday morning. The move comes shortly after rival AI firm OpenAI reportedly expressed interest in acquiring Chrome, which along with its open-source Chromium software is the primary browser for most PC users.

The bid follows last year’s ruling by a federal judge that Google holds an illegal monopoly in internet search. The U.S. government has proposed remedies, including forcing Google to sell Chrome and license its search data to competitors. Judge Amit Mehta is expected to rule on the case’s remedies soon.

Perplexity, valued at $18 billion after a $100 million funding round earlier this year, says it has secured backing from multiple large investment funds to fully finance the deal. “Multiple large investment funds have agreed to finance the transaction in full,” said Dmitry Shevelenko, Chief Business Officer at Perplexity.

This is not the company’s first bold approach. Earlier this year, Perplexity submitted a bid to merge with TikTok’s U.S. operations in response to potential bans.

The startup plans to release its own AI-enabled browser, Comet, and has assured that if it acquires Chrome, it will not make “stealth modifications” to the software. “This is part of our commitment to continuity and choice for users, and will likely be seen as having the benefit of stability for Google and its many advertisers,” the company said.

If the acquisition goes ahead, Perplexity pledges to invest $3 billion in Chrome and Chromium over the next two years and offer roles to a substantial portion of Chrome’s existing team. The company emphasised that no equity in Perplexity would be part of the deal to avoid antitrust complications.