In a stunning move that underscores the tectonic shifts reshaping the tech landscape, artificial intelligence startup Perplexity AI has submitted an unsolicited $34.5 billion all-cash offer to acquire Google’s Chrome browser. The bid, confirmed Tuesday, arrives as Google battles severe antitrust pressure that could potentially force a sale of its dominant web platform.
Led by former Google and OpenAI employee Aravind Srinivas, three-year-old Perplexity boasts backers including Amazon founder Jeff Bezos and chip giant Nvidia. Despite its own $18 billion valuation, the startup claims multiple venture capital funds have committed to fully finance the monumental transaction. The proposal, dubbed “Project Solomon,” includes pledges to maintain Google as Chrome’s default search engine, invest $3 billion in development over two years, and keep the foundational Chromium code open-source.
Antitrust Pressure Creates Opportunity
Perplexity’s bold play directly capitalizes on Google’s mounting legal vulnerabilities. Last year, a U.S. federal court ruled Google unlawfully monopolized online search markets, prompting the Department of Justice (DOJ) to propose Chrome’s divestiture as a critical remedy. The DOJ argues Chrome functions as a “critical search access point,” entrenching Google’s dominance.
“Judge Mehta is a pretty orthodox guy. It’s very possible that he would hold off on requiring a sale until the appeals process is worked out, and that could be a very lengthy period,” said Herbert Hovenkamp, antitrust professor at the University of Pennsylvania Carey Law School, referencing the pending remedies ruling expected this month. Google has vowed to appeal, labeling forced divestment “radical,” “unprecedented,” and harmful to consumer security.
Strategic Play for AI Dominance
For Perplexity, acquiring Chrome represents a quantum leap in its battle against AI titans like OpenAI and Google. Chrome’s estimated three billion users offer unparalleled scale for data collection and distribution, vital advantages as chatbots like ChatGPT and Perplexity’s own AI search engine redefine online information access. The startup recently launched its AI-powered browser, Comet, but absorbing Chrome would instantly grant it mainstream reach and user infrastructure far beyond organic growth.
“This is a smart and opportunistic move by Perplexity given the case against Google and regulatory scrutiny,” Wedbush tech analyst Dan Ives told CNN, though he estimated Chrome’s true value likely exceeds $50 billion. Other investors were skeptical. Heath Ahrens dismissed the bid as a “stunt, and nowhere near Chrome’s true value,” while Tomasz Tunguz of Theory Ventures suggested Chrome could be “ten times more valuable than the bid or more”.
Long Odds and Legal Complexities
Industry observers widely view the bid as a long shot. Google has not signaled willingness to sell Chrome, and its parent company, Alphabet ($2.5 trillion market cap), possesses ample resources for a protracted legal fight. The appeals process could stretch years, potentially reaching the Supreme Court.
Perplexity’s offer includes employment guarantees for key Chrome staff and a 12-month transitional support agreement with Google. It also demands that Google respond by August 15, a tight deadline analysts interpret as leveraging the imminent court ruling. This isn’t Perplexity’s first headline-grabbing attempt; it previously pursued a merger with TikTok’s U.S. operations, which remains unresolved.
The Broader Battle for the Web
The unsolicited bid highlights how antitrust enforcement is intersecting with the AI revolution to redraw industry power maps. As browsers regain prominence as gateways to AI-driven search, control over these platforms becomes existential. “Perplexity believes in the open web,” a company spokesperson told CNN, framing the offer as a commitment to user choice and competition.
Whether this audacious move succeeds or not, it signals a new era where agile AI startups are willing to challenge tech’s entrenched giants with regulators as potential allies. As the DOJ’s antitrust victory demonstrated, even monopolies face moments of reckoning.
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