Perplexity AI Challenges Google with $34.5B Chrome Bid
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Perplexity AI Challenges Google with $34.5B Chrome Bid

New Delhi, India, August 13, 2025 – Perplexity AI has made a surprising $34.5 billion cash offer to buy Google’s Chrome browser, taking a bold step in the race to control the future of AI-driven web search. The startup, valued at just $14 billion, aims to expand its presence by acquiring a product used by more than 3 billion people worldwide.

Led by CEO Aravind Srinivas, the three-year-old company has already developed its browser, Comet. This reflects broader trends in artificial intelligence adoption across digital platforms. By adding Chrome to its portfolio, Perplexity AI hopes to compete directly with larger players like OpenAI, which is also building an AI-powered browser. “We want to give users more freedom and create a healthier, competitive web,” Srinivas said.

The timing of the offer is no coincidence. Google’s parent company, Alphabet Inc., faces growing legal pressure. A U.S. court ruled last year that the company held an illegal monopoly in online search. As a possible solution, the Justice Department has suggested that Google may need to sell parts of its business, including Chrome. While Google has not responded to the offer, it has also not expressed any intention to sell the browser.

Perplexity AI structured the offer as an all-cash deal with no equity involved. The company has raised about $1 billion from investors like SoftBank and Nvidia. Although it did not reveal specific financing details, Perplexity said several funds have offered to support the full purchase amount.

According to a term sheet reviewed by Reuters, Perplexity AI would keep Chromium, Chrome’s open-source code, freely available. It also plans to invest $3 billion in Chrome over two years and will keep Google Search as the default engine. The company said it would protect user choice and address long-term competition concerns.

Experts doubt that Google will agree to sell Chrome voluntarily. The browser plays a crucial role in Google’s AI and advertising strategies. It now supports features like AI-generated summaries, which are designed to protect Google’s dominance in online search. Analysts believe that losing Chrome would weaken the company’s position in the evolving AI landscape.

Legal scholars say the antitrust case could take years to resolve. Judge Amit Mehta, who is handling the case, is expected to announce a decision on remedies soon. However, any ruling could face long appeals. Law professor Herbert Hovenkamp from the University of Pennsylvania said courts usually avoid forcing companies to sell parts of their business, especially if legal disputes are ongoing.

Some industry leaders believe the offer is too low. Gabriel Weinberg, CEO of DuckDuckGo, recently estimated Chrome’s market value at $50 billion or more. He suggested that if regulators require Alphabet to sell the browser, it could command a much higher price.

Even if the deal doesn’t move forward, Perplexity’s offer shows how much the browser market has changed. Browsers are no longer just tools to access websites; they are now essential platforms in the competition for control of user data and AI-driven experiences. Perplexity’s move signals that it wants to be at the center of that shift, influencing how billions of people search and interact with the web in the AI era.

 

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