Perplexity AI has made a $34.5 billion offer to acquire Google’s popular Chrome web browser, which the tech giant could be compelled to sell under ongoing antitrust proceedings. The proposed amount, outlined in a letter of intent from Perplexity, is nearly twice the startup’s reported $18 billion valuation from its recent funding round. “This proposal aims to fulfill an antitrust remedy in the highest public interest by placing Chrome in the hands of a capable, independent operator committed to continuity, openness, and consumer protection,” Perplexity CEO Aravind Srinivas wrote in the letter, a copy of which was seen by AFP. Google is currently awaiting a ruling from US District Court Judge Amit Mehta on potential “remedies” following last year’s landmark decision that found the company had maintained an illegal monopoly in online search. US government lawyers have pushed for Google to divest Chrome, arguing that advancements in artificial intelligence could further strengthen its dominance as the primary gateway to the internet. Google, however, has urged the judge to reject the divestment, with a decision expected by the end of the month. Google did not immediately respond to a request for comment. Perplexity’s offer vastly undervalues Chrome and “should not be taken seriously,” Baird Equity Research analysts said in a note to investors. Given that Perplexity already has a browser that competes with Chrome, the San Francisco-based startup could be trying to spark others to bid or “influence the pending decision” in the antitrust case, Baird analysts theorised. “Either way, we believe Perplexity would view an independent Chrome — or one no longer affiliated with Google — as an advantage as it attempts to take browser share,” Baird analysts told investors. Google contends that the United States has gone way beyond the scope of the suit by recommending a spinoff of Chrome, and holding open the option to force a sale of its Android mobile operating system. “Forcing the sale of Chrome or banning default agreements wouldn’t foster competition,” said Cato Institute senior fellow in technology policy Jennifer Huddleston. “It would hobble innovation, hurt smaller players, and leave users with worse products.” Google attorney John Schmidtlein noted in court that more than 80% of Chrome users are outside the United States, meaning divestiture would have global ramifications. “Any divested Chrome would be a shadow of the current Chrome,” he contended. “And once we are in that world, I don’t see how you can say anybody is better off.” The potential of Chrome being weakened or spun off comes as rivals such as Microsoft, ChatGPT and Perplexity put generative artificial intelligence (AI) to work fetching information from the internet in response to user queries. Google is among the tech companies investing heavily to be a leader in AI, and is weaving the technology into search and other online offerings.
Perplexity AI eyes Google’s Chrome with $34.5bn acquisition proposal
