Perplexity AI offers to buy Google Chrome amid antitrust turmoil

In a move that has sent shockwaves through the tech and legal worlds, the AI-powered search startup Perplexity has made an unsolicited $34.5 billion all-cash offer to buy Google's Chrome browser. The audacious bid, which is nearly double Perplexity's own valuation, comes at a critical moment for Google, which is facing mounting pressure from U.S. antitrust regulators who have proposed forcing the company to sell Chrome to remedy its illegal search monopoly.

The offer, sent to Alphabet CEO Sundar Pichai, was framed by Perplexity CEO Aravind Srinivas as a solution "designed to satisfy an antitrust remedy in highest public interest."

What are the stakes?

Acquiring Chrome, with its over three billion users, would instantly solve Perplexity's biggest challenge: distribution. It would give the company direct access to a massive user base and position it to compete on an even playing field with Google in the AI-driven search market.

The company claims to have secured full financing for the deal from unnamed investment funds, a critical factor given the offer's scale.

For Google, it’s a tough spot to be in. The company has steadfastly opposed any forced divestiture, arguing that selling Chrome would harm innovation, create security risks, and damage its business. However, the Department of Justice (DOJ) has argued the opposite, stating that Chrome's sale is necessary to break Google's stranglehold on search.

A U.S. District Court judge is expected to issue a final ruling on remedies, and Perplexity's offer presents a real-world option for a potential buyer, complicating Google's defense.

Bold Bid or Publicity Stunt?

The public and expert sentiment around the bid is a mix of fascination and skepticism. Some analysts believe the offer is a calculated publicity stunt designed to get Perplexity's name into the conversation and influence the judge's decision.

They note that the bid may significantly undervalue Chrome, which some have estimated could be worth upwards of $50 billion.

However, others argue that even if the deal is unlikely to close, it's a brilliant strategic move. It forces the issue, and regardless of the outcome, it positions Perplexity as a serious player and a willing partner for regulators looking to restore competition.

As it stands, the fate of one of the world's most popular web browsers is in the hands of the federal court, and a “little” but ambitious AI startup is waiting in the wings to capitalize on the outcome.