Perplexity Bids $34.5B for Google Chrome Amid Antitrust Pressure

In a striking move that underscores the burgeoning confidence of young artificial intelligence companies, the AI startup Perplexity has lodged an unsolicited offer to acquire Google’s ubiquitous Chrome web browser for a hefty $34.5 billion. This audacious bid unfolds against the backdrop of an imminent antitrust ruling against the tech behemoth, with a U.S. District Court decision anticipated as early as this week. Judge Amit Mehta’s forthcoming judgment could potentially compel Google to divest its browser, a measure aimed at curtailing the company’s commanding grip on the internet search market.

Aravind Srinivas, Perplexity’s chief executive, articulated the company’s rationale in a letter addressed to Sundar Pichai, CEO of Google’s parent company, Alphabet. Srinivas stated that the offer was “designed to satisfy an antitrust remedy in highest public interest by placing Chrome with a capable, independent operator.” Google has yet to issue a public response to the proposition.

Perplexity stands among a new wave of companies striving to disrupt Google’s long-held dominance in online search. These innovators leverage AI-powered chatbots and similar technologies, delivering concise, direct answers to user queries rather than the traditional list of links. Acquiring the Chrome browser, which boasts a massive user base, could grant Perplexity a significant competitive advantage against a formidable roster of challengers, including Microsoft, OpenAI, and Silicon Valley’s You.com.

However, the unsolicited bid faces considerable hurdles, not least due to Perplexity’s own estimated valuation of $18 billion—less than half the proposed purchase price. Despite this disparity, a company spokesman, Jesse Dwyer, informed The New York Times that external investors have committed to backing a potential deal.

The context for Perplexity’s offer is rooted in Judge Mehta’s ruling last year, which found Google in violation of antitrust regulations for maintaining its search market supremacy. Following this victory in its antitrust case against the search giant, the Justice Department has vigorously advocated for the federal court to mandate the sale of Chrome. The department’s aggressive remedy proposals also include compelling Google to share search results and advertising revenue with rivals, asserting that such measures would foster greater competition.

Government litigators argued before Judge Mehta that Google’s near-monopoly—controlling approximately 90 percent of the search market—cannot be effectively remedied without fundamental structural changes to the company. Furthermore, the government contended that without a decisive remedy like the divestiture of Chrome, Google is poised to extend its dominance into the rapidly evolving field of artificial intelligence. David Dahlquist, the government’s lead litigator, emphasized this point, stating, “This court’s remedy should be forward looking and not ignore what’s on the horizon. Google is using the same strategy that they did for search and now applying it to Gemini,” referring to Google’s advanced AI technology.

Google, for its part, has consistently opposed the sale of Chrome, instead proposing more limited adjustments to its business model. Nevertheless, Perplexity and other AI companies testified in April during Judge Mehta’s antitrust remedies hearing, explicitly expressing their interest in acquiring the browser.

Founded in 2022 by a collective of AI researchers, including Mr. Srinivas, who previously worked at OpenAI, Perplexity has been actively pursuing strategies to boost the adoption of its AI-powered search engine. In a notable move, the company has even launched its own web browser, named Comet, in an effort to integrate its search technology more deeply into user workflows. The company’s aggressive approach to content acquisition has also drawn scrutiny; The New York Times, for instance, issued a cease-and-desist letter to Perplexity last year, demanding that the startup halt its use of the newspaper’s content to power its AI technologies.