Perplexity AI Challenges Google with $34.5bn Bid for Chrome Amidst Antitrust Scrutiny
Tech startup Perplexity AI has unexpectedly proposed a $34.5 billion acquisition of Google Chrome, the world’s leading web browser. Established just three years ago, Perplexity boasts high-profile backers such as Amazon founder Jeff Bezos and chip manufacturer Nvidia.
The company is helmed by a former employee from both Google and OpenAI. However, some tech industry investors view this offer as a stunt, citing it as significantly lower than Chrome’s actual worth, and expressing uncertainty over whether the platform is even for sale.
This month, a US federal court ruling could potentially force Google to divest its search business due to antitrust concerns. Google has announced plans to appeal such a decision, stating that spinning off Chrome represents an “unprecedented proposal” which would negatively impact consumers and security. With approximately three billion users, Chrome holds significant influence in the digital realm.
Google’s dominance of the search engine and online advertising market has been under scrutiny, with the tech giant currently embroiled in two antitrust cases within the US. A spokesperson for Perplexity told the BBC that their bid signifies a “significant commitment to an open web, user choice, and continuity for everyone who uses Chrome.”
Perplexity believes that shifting Chrome to an independent operator dedicated to user safety would benefit the public at large. In a letter to Sundar Pichai, CEO of Alphabet (Google’s parent company), Perplexity expressed their intentions without disclosing details on how the proposed deal would be financed. As of July, Perplexity was valued at $18 billion.
Judith MacKenzie, head of Downing Fund Managers, described the bid as “bold but unsolicited” and not yet funded. Tech investor Heath Ahrens deemed it a “stunt,” far from reflecting Chrome’s true value given its unrivaled data and reach.
However, Tomasz Tunguz from Theory Ventures placed the value of Chrome at “possibly ten times more than the bid or even higher.”
Perplexity has been in the spotlight for other reasons too—specifically due to allegations of copyright violations by media organizations. In June, the BBC sent a legal notice to Perplexity’s CEO Aravind Srinivas over concerns about his company reproducing BBC content without permission. Perplexity countered that these claims further demonstrated the BBC’s efforts to preserve Google’s “illegal monopoly.”
Earlier in the year, Perplexity made headlines after expressing interest in acquiring TikTok’s American version, which faces a September deadline to be sold or risk being banned in the US. If successful, Perplexity has stated that they would continue using Google as the default search engine within Chrome, with users having the option to adjust their settings.
The company also intends to maintain and support Chromium, an open-source platform widely used by Chrome, Microsoft Edge, and Opera among other browsers.
