Perplexity AI has made a surprising $34.5 billion all-cash offer to acquire Google’s Chrome browser. The bid, revealed on August 12, far exceeds the startup’s own valuation, highlighting its ambition to access Chrome’s billions of users and strengthen its position in the AI search market.
Founded by Aravind Srinivas, Perplexity AI has gained attention with bold acquisition attempts. Earlier this year, it proposed merging with TikTok’s U.S. operations to address concerns over Chinese ownership.
Other companies, including OpenAI, Yahoo, and private equity firm Apollo Global Management, have also expressed interest in Chrome. Their moves come as regulatory scrutiny increases, pressuring Google over its online search dominance. Google has not publicly considered selling Chrome and plans to appeal a U.S. court ruling last year that found the company maintained an unlawful monopoly. The Department of Justice has sought a Chrome divestiture as part of the case’s remedies.
Perplexity did not reveal how it plans to fund the $34.5 billion offer. The three-year-old AI company has raised roughly $1 billion from investors including Nvidia and Japan’s SoftBank and was last valued at $14 billion. The startup said multiple funds have offered to finance the deal in full, though it did not disclose the names. Following the announcement, Alphabet shares rose 1.6% in afternoon trading.
As AI-powered chatbots such as ChatGPT and Perplexity gain users, web browsers are becoming essential gateways to search traffic and valuable user data. Chrome’s massive user base makes it a critical tool for any company aiming to compete in AI search.
Perplexity already operates an AI-enabled browser called Comet, which can perform tasks on behalf of users. Acquiring Chrome would give the startup access to over three billion users, significantly increasing its reach and competitive edge against larger rivals like OpenAI, which is developing its own AI browser.
The Perplexity bid includes a pledge to keep Chrome’s underlying code, known as Chromium, open source. The company plans to invest $3 billion over two years and maintain Chrome’s default search engine. The offer is all-cash with no equity component and aims to preserve user choice while addressing potential antitrust concerns.
Analysts note that Google is unlikely to sell Chrome. The browser is central to its AI strategy, which now includes features such as AI-generated search summaries called Overviews. Selling Chrome would likely trigger a prolonged legal battle.
Federal Judge Amit Mehta is expected to issue a ruling on remedies in the Google search antitrust case later this month. Legal experts suggest the appeals process could delay any action. Herbert Hovenkamp, a law professor at the University of Pennsylvania Carey Law School, explained that the case could progress to the DC Circuit and potentially the Supreme Court, a process that could last several years.
Perplexity’s $34.5 billion offer also falls below estimates for Chrome’s potential market value. DuckDuckGo CEO Gabriel Weinberg has suggested the browser could be worth at least $50 billion if Google were forced to sell it. Despite this, the startup’s bid signals a bold effort to challenge Big Tech and carve out a major role in the AI search space.
