Perplexity AI recently made an unsolicited cash offer of $34.5 billion for Alphabet’s Chrome browser.
Led by Aravind Srinivas, this isn’t Perplexity’s first high-profile move; back in January, they proposed a merger with TikTok US to address concerns surrounding the app’s Chinese ownership.
Acquiring Chrome could provide access to over 3 billion users, which would help the startup in the competitive AI search landscape, especially with increasing regulatory scrutiny on Google.
Google has not yet commented on the situation. The company does not plan to sell Chrome and is appealing a court ruling regarding it from last year.
Part of the Department of Justice’s case relief is centered around the sale of Chrome.
Perplexity hasn’t disclosed how it intends to fund the offer.
Three years into its operations, Perplexity has raised about $1 billion from investors, including Nvidia and Japan’s SoftBank, and was previously valued at $14 billion.
Some investment funds have indicated their willingness to fully back the offer, though their names haven’t been revealed.
As more users turn to chatbots like ChatGPT and Perplexity, the role of web browsers as gateways for search and user data has become increasingly significant, positioning them at the forefront of Big Tech’s AI strategies.
Perplexity already has an AI browser named Comet that performs tasks on behalf of users, helping it better compete with larger players like OpenAI.
It’s worth mentioning that the creators of ChatGPT have also expressed an interest in acquiring Chrome, as they develop their own AI browser.
According to a document seen by Reuters, Perplexity’s bid includes a commitment to maintaining the underlying open-source browser code known as Chromium, investing $3 billion over the next two years, and leaving Chrome’s default search engine unchanged.
The company aims to preserve user options while avoiding stock elements and addressing competitive concerns.
Analysts generally believe that Google is unlikely to sell Chrome and will likely engage in extensive legal battles to protect its interests.
A federal judge is anticipated to rule on remedies in the Google Search antitrust cases later this month.
Interestingly, Perplexity’s offer is viewed as being under the valuation of at least $50 billion, indicating that Gabriel Weinberg, CEO of DuckDuckGo, might influence whether Google is compelled to divest Chrome.
Besides Perplexity and OpenAI, Yahoo and Apollo Global Management have also shown interest in Chrome.
There have been complaints from the parent company of the Post regarding the confusion surrounding this offer.
