AI startup Perplexity is planning to buy Google Chrome within $34.5 billion bid

Artificial intelligence (AI) start-up Perplexity has made a surprise $34.5bn takeover bid for Google's Chrome internet browser

Perplexity position
User safety would benefit the public after Moving Chrome to an independent operator, Perplexity said in a letter to Sundar Pichai, the boss of Google's owner Alphabet.

As part of the proposed takeover, Perplexity said it would continue to have Google as the default search engine within Chrome, though users could modify their settings.

The firm said it would also maintain and support Chromium, a widely-used open-source platform that supports Chrome and other browsers including Microsoft Edge and Opera.

Perplexity did not respond to queries about how the proposed deal would be funded. In July, it had an estimated value of $18bn.

Google's Position

The Google has not announced any plans to sell Chrome - the world's most popular web browser with an estimated three billion-plus users, BBC reports.

After the technology titan involved in years of legal discussions as part of two antitrust cases, Google's dominance of the search engine and online advertising market has come under intense survey.

A US federal judge is expected to issue a ruling this month that could see Google being ordered to break up its search business.

The company declared that spinning off Chrome was an "unprecedented proposal" that would harm consumers and security.

Experts opinions

Technology industry investor and start-up founder Heath Ahrens called Perplexity's move a "stunt, and nowhere near Chrome's true value, given its unmatched data and reach."

"The offer isn't serious, but if someone like Sam Altman or Elon Musk tripled it, they could genuinely secure dominance for their AI," he added.

It is also not clear whether Google is considering selling their platform, Tomasz Tunguz from Theory Ventures said.

He also said the offer is a lot lower than the browser is worth "given the value of Chrome is likely significantly higher – maybe ten times more valuable than the bid or more."

What is Perplexity?

Perplexity's app is among the rising players in the generative AI, alongside more well-known platforms like OpenAI's ChatGPT and Google's Gemini.

Last month, it launched an AI-powered browser called Comet.

The company made headlines earlier this year after offering to buy the American version of TikTok, which faces a deadline in September to be sold by its Chinese owner or be banned in the US.

Perplexity has reportedly drawn interest from technology giants including Apple and Facebook-owner Meta.

Why Perplexity is planning to buy Chrome?

The AI sphere gets through a harsh concurrence. Tech giants, as Meta and Open AI are ready to give massive paychecks for talent, while both startups spend tens of billions on AI infrastructure annually. Buying Chrome would create strong positions for Perplexity through unlimited access to users and search traffic.

If the company pulls off the acquisition, it would gain a direct path in the browser market, and put itself in direct competition with nowadays monopolists.

 

Copied