Perplexity AI reportedly offered Google $34.5 billion to purchase Chrome

Perplexity AI bids $34.5 billion for Chrome, potentially reshaping digital landscapes.

: Perplexity AI, supported by Nvidia, made an unsolicited offer of $34.5 billion to acquire Google's Chrome web browser. This substantial bid comes even as Perplexity is valued at just $18 billion, showing its ambitions to cement a stronger foothold in the digital landscape. Despite the offer, Google is not willing to yield its control over Chrome, amid antitrust pressures deeming it an illegal monopoly in the search market. The Department of Justice may force Google to divest Chrome, instigating a potential bidding war with companies eager to possess this important web infrastructure.

In a remarkable move demonstrating the spirited energy in the AI sector, Perplexity AI, founded in 2022, has proposed an unsolicited $34.5 billion offer to purchase the Chrome web browser from Google. This startup operates in the AI-driven search market, backed by high-profile supporters such as Nvidia, and has quickly scaled to a valuation of $18 billion with a team of around 50 employees. Sources, including Reuters, report that 'multiple funds' have shown interest in backing the deal, highlighting strong financial confidence in Perplexity’s ambitious endeavor.

Perplexity AI seeks to broaden its influence by integrating its AI search engine with Chrome, which is based on Chromium, Google’s open-source project. The startup has already launched an 'agentic' browser called Comet, powering advancements in the AI-driven browser space. Additionally, it is in exploratory partnerships with Mozilla to make its AI search engine an official choice in Firefox, as noted by TechSpot.

Interestingly, Gabriel Weinberg, the CEO of the privacy-oriented search engine DuckDuckGo, estimates that the Chrome browser alone is worth about $50 billion, a substantial figure compared to Perplexity's entire valuation. This positions Perplexity's bid as both bold and significantly impactful, reflecting the startup's strategic positioning to harness the expansive web data collected through Chrome's massive user base of three billion active accounts.

Industry dynamics reveal that Alphabet (Google's parent company) is presently unresponsive regarding the offer and retains a firm grip on its browser, despite potential legal mandates forcing divestiture. A recent federal judge's ruling identified Google’s control over the search market as monopolistic, prompting the Department of Justice to consider pushing Google to relinquish Chrome. This divestiture could ignite intense interest among tech companies hoping to leverage the widespread user engagement inherent to Chrome.

Putting $3 billion into continued browser development over the next two years, Perplexity aims to preserve consumer choice, keeping Google as the default search engine and maintaining the open-source nature of the Chromium project. The outcome of the antitrust case awaited in the near future brings uncertainty, creating a watchful summer for Alphabet. Perplexity has also sought expansion through other avenues, such as a previous attempt to acquire the social media app TikTok, reflecting its aggressive pursuit of major digital assets.

Sources: Reuters, TechSpot.

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