AI startup Perplexity AI has made an unsolicited $34.5 billion offer to acquire Google’s Chrome browser. This audacious bid, which is nearly double Perplexity’s own $18 billion valuation, represents a strategic move to position itself as a major player in the rapidly evolving AI search landscape.c
Why is Perplexity Making This Offer?
The offer comes at a pivotal moment for Google, as the tech giant faces mounting antitrust pressure from the U.S. Department of Justice (DOJ). In August 2024, a federal judge ruled that Google illegally monopolized the online search market. The DOJ has proposed several remedies, including forcing Google to divest Chrome as a key solution to restore competition.
The antitrust ruling found that Google’s exclusive default agreements with companies like Apple and Samsung, where Google pays billions annually to maintain its search engine as the default, constituted anticompetitive behavior. Chrome, with over 3.5 billion users and controlling approximately 68% of the global browser market, is considered a critical gateway for search traffic.
Access to Massive User Base
For Perplexity, acquiring Chrome would provide immediate access to over 3 billion users, giving the AI startup unprecedented scale to compete with larger rivals like OpenAI. This user base would be invaluable for training AI models and collecting the vast amounts of behavioral data necessary for improving search algorithms and personalization.
Control of the Search Gateway
Chrome serves as a crucial entry point for internet searches, making it strategically valuable for any company focused on search technology. By owning Chrome, Perplexity would control not just the search experience but the entire browsing interface, allowing it to integrate its AI-powered search capabilities more deeply into users’ daily internet activities.
Perplexity’s Browser Strategy
Comet: The AI-Native Alternative
Perplexity recently launched Comet, its own AI-powered browser that serves as a direct competitor to Chrome. Built on Chromium (the same open-source foundation as Chrome), Comet integrates Perplexity’s AI search engine as the default and offers advanced features like:
- Real-time content summarization
- Cross-tab comparison for research and shopping
- Automated task execution including booking meetings and managing emails Conversational search interface
The launch of Comet demonstrates Perplexity’s broader ambition to challenge Google not just in search but in the entire browsing experience.
Market Positioning Against Google
Perplexity positions itself as offering a superior search experience compared to Google. While Google’s search results often require users to click through multiple links, Perplexity provides direct, cited answers with source attribution, making it particularly popular among professionals and students seeking efficient information retrieval.
The Competitive Landscape
AI Search Engine Battle
The bid occurs amid intense competition in the AI search space. According to recent data, ChatGPT leads with 3.8 billion monthly visits, followed by DeepSeek (277.9 million), Google Gemini (267.7 million), and Perplexity AI with 99.5 million visits. This competition has led to Google losing market share below 90% for the first time in over a decade.
Other Interested Parties
Perplexity isn’t alone in its interest in Chrome. OpenAI, Yahoo, and Apollo Global Management have also expressed interest in acquiring the browser should Google be forced to sell. OpenAI is reportedly developing its own AI-powered browser, while other tech giants are integrating AI features into their existing browsers.
Terms of the Offer
Perplexity’s proposal includes several key commitments designed to address regulatory concerns:
- Keep Chrome’s Chromium engine open source
- Invest $3 billion over two years in development
- Retain Google as the default search engine rather than replacing it with Perplexity
- All-cash offer with no equity component to avoid complex ownership structures
Industry Skepticism and Challenges
Funding Questions
Despite claims that multiple investment funds have agreed to finance the deal, analysts remain skeptical about how a company that has raised approximately $1 billion to date can fund a $34.5 billion acquisition. The company’s current valuation of $18 billion makes this offer particularly ambitious.
Market Reaction
Wall Street analysts have largely dismissed the offer as “more bluster than reality”. Many view it as a strategic PR move designed to generate attention for Perplexity’s Comet browser and potentially influence regulatory decisions regarding Google’s antitrust case.
Google’s Response
Google has not officially responded to the offer and shows no intention of selling Chrome. The company is expected to appeal the antitrust ruling and engage in a lengthy legal battle to retain control of its browser.
The Broader Context
The bid represents a significant evolution in the traditional “browser wars.” Unlike previous competitions focused primarily on speed and features, the current battle centers on AI integration and intelligent automation. Companies are recognizing that browsers serve as front-row seats to users’ digital lives, providing invaluable data for training AI systems
Regulatory Implications
Even if Perplexity’s offer were accepted, it would likely face significant regulatory scrutiny. Antitrust authorities would need to assess whether transferring Chrome’s massive user base to an AI-focused company creates new monopolistic concerns.
Conclusion
Perplexity’s $34.5 billion offer for Google Chrome represents more than just an acquisition attempt—it signals the company’s ambition to fundamentally reshape how people interact with the internet. While the likelihood of the deal succeeding remains slim, it highlights the intensifying competition in AI search and the strategic importance of controlling user access points to the web.
Whether this bold move results in an actual acquisition or simply serves as an effective marketing strategy for Perplexity’s Comet browser, it has succeeded in positioning the company as a serious challenger to Google’s dominance in the rapidly evolving landscape of AI-powered search and browsing experiences.