Perplexity makes $34.5 billion surprise bid for Google Chrome

You have just ₹18 in your wallet, and you want to buy something worth ₹34. Most people will call your plan outlandish. Now imagine this happening, but with billions of dollars involved.

US-based AI start-up Perplexity just did this. The company, which is valued at $18 billion, just made an offer to Google to buy the web browser Google Chrome. According to a report by The Wall Street Journal, the AI start-up has offered $34.5 billion to acquire Chrome in an all-cash deal.

Perplexity finds investors

Perplexity confirmed the move to The Wall Street Journal, and told the publication that several investors, including large venture-capital funds, had agreed to back the Chrome deal.

Google in legal crosshairs

Perplexity’s ambitious move comes at a time when Google itself is in the legal crosshairs over its search monopoly.

In his verdict delivered in August 2024, US District Court Judge Amit Mehta found the internet giant guilty of illegally maintaining a monopoly in two product markets in the United States, general search services and general text advertising — through its exclusive distribution agreements.

Google’s monopoly: The remedy

After that initial ruling, Justice Mehta has also held a three-week hearing this year on how to remedy this situation. During the process, the United States government proposed that the court should force Google to sell Chrome, among other measures.

Google counters government proposal

However, Google countered the government’s proposal, saying it would constitute a huge legal overreach and endanger products that are good for consumers.

Rather, the company proposed that the judge should focus on the deals Google has with phone-makers such as Apple and Samsung. It added that Google should be required to give those companies more flexibility than in earlier versions of their deals.

Now, Justice Amit Mehta is expected to deliver his verdict, with the remedies for Google’s monopoly, as early as this month.

Perplexity’s letter to Pichai

Making the Chrome acquisition pitch to Alphabet CEO Sundar Pichai, Perplexity portrayed its offer as a public-interest remedy designed to preserve user safety and continuity.

In its letter to Pichai, Perplexity said it would maintain and support Chromium, the open-source project underlying Chrome.

The AI company, headed by Indian-American CEO Aravind Srinivas, also promised to initially keep Google as the browser’s default search engine, though users will be allowed to change settings.

Perplexity’s own web browser

Perplexity has made the surprise offer for the Chrome acquisition, even as it is pushing its own AI browser Comet. Comet uses Perplexity's search engine. It is currently available on Mac and Windows platforms. More platforms are expected to arrive soon.

Why Google Chrome?

Google Chrome is the most widely used web browser on the internet. According to Google’s own statements, the browser is used by more than 3 billion people worldwide. That’s almost half the number of internet users in the world.

Access to Chrome also gives the owner access to vast data troves, which can come in handy for the owner in the artificial intelligence race.

That’s why it’s unlikely that Google, which is working to catchup with the likes of ChatGPT and Perplexity with its Gemini, will agree to sell Chrome to Perplexity. Unless it’s forced to do so after Justice Mehta’s verdict.