Perplexity AI Offers $34.5 Billion to Acquire Google Chrome Amid Antitrust Concerns

Perplexity AI has proposed a $34.5 billion offer to acquire Google's Chrome web browser, a move that could potentially lead to Chrome being sold off as part of ongoing antitrust proceedings. The offer, outlined in a letter of intent by Perplexity, nearly doubles the startup’s recent valuation of $18 billion.

Aravind Srinivas, CEO of Perplexity, stated that the proposal aims to fulfill antitrust remedies in the best public interest by transferring Chrome to an independent operator focused on maintaining continuity, openness, and consumer rights.

Google is currently awaiting a decision from US District Court Judge Amit Mehta on what remedies to implement following a landmark ruling last year that found Google maintained an illegal monopoly in online search. The US government has called for Google to divest its Chrome browser, warning that advances in artificial intelligence could further entrench the company's dominance.

Google has urged the court to reject the divestment, and a decision is expected by the end of this month. The company did not immediately comment on Perplexity’s bid.

Analysts from Baird Equity Research dismissed Perplexity’s offer as significantly undervaluing Chrome and suggested it may be a strategic move to influence the case or to position the startup to benefit from an independent Chrome. Baird’s analysts noted that Perplexity already has a competing browser and might see an independent Chrome as advantageous for gaining browser market share.

Google counters that the US government’s push for a Chrome sale exceeds the scope of the antitrust case and cautions that forcing a sale could have global repercussions, given that over 80% of Chrome users are outside the US. They argue that such a move could weaken the browser and diminish the quality of products available to consumers.

The potential breakup or weakening of Chrome comes amid increased competition from Microsoft, ChatGPT, and Perplexity, all of which are leveraging generative AI to enhance internet search and information retrieval. Google continues to invest heavily in AI, integrating the technology into its search engine and other services.