Perplexity is attempting to acquire Google Chrome for $34.5 billion (€29.5 billion). The startup is offering more than twice its value for the browser, which is crucial in the AI search war.
Chrome is suddenly at the center of an acquisition battle. In addition to Perplexity, OpenAI, Yahoo, and investor Apollo Global Management have also expressed interest in the browser. The sudden attention comes from a lawsuit accusing Google of forming a monopoly in online search.
The US Department of Justice is demanding that Google sell Chrome as part of the penalties. Google itself refuses to do so and is appealing the ruling.
Browsers have become valuable to AI companies. They act as gateways to user data and search traffic, which is crucial for training AI models. Perplexity has therefore promised to keep the open-source Chromium code and invest $3 billion over two years.
Startup aims far above its value
Perplexity AI has made an unexpected move by offering $34.5 billion for Google Chrome. Aravind Srinivas’ company was valued at $14 billion last year, but now dares to make an offer that is 2.5 times higher. The AI search engine claims that several funds are willing to finance the entire deal.
Perplexity has already raised hundreds of millions in recent months to take on Google. The company is developing its browser called Comet, but Chrome would give it direct access to more than 3 billion users worldwide.
This is not the first time Perplexity has made big moves. Earlier this year, the startup made a similar bid for TikTok to circumvent Chinese ownership.
Battle for the future of search
More and more users are abandoning traditional search engines in favor of AI chatbots such as ChatGPT and Perplexity itself. This shift makes control over browsers more important than ever. Competitor DuckDuckGo estimates that Chrome is worth at least $50 billion if Google is forced to sell. Perplexity’s bid is well below that, raising questions about its feasibility.
Apple is even considering acquiring Perplexity to create an alternative to Google Search. The AI search market is becoming increasingly heated as a result of these developments.
Perplexity’s bid proves that small AI players are willing to take extreme risks. However, whether the startup can actually deliver what it promises remains the big question.