Perplexity AI offers $34.5 billion for Google Chrome

Artificial intelligence startup Perplexity has proposed acquiring Google’s Chrome browser for $34.5 billion, significantly exceeding its estimated valuation of $18 billion.

According to The Wall Street Journal, the offer has garnered backing from several major venture-capital investors.

Estimates vary on Chrome’s enterprise value, ranging from $20 billion to $50 billion.

U.S. District Judge Amit Mehta is currently considering whether to mandate the sale of Chrome as part of antitrust remedies against Google, which was found to have monopolised the search market.

Perplexity’s acquisition bid also appears to be a signal to the judge about market interest.

In its letter to Alphabet’s chief executive Sundar Pichai, Perplexity stated its intent to support Chromium, maintain Google as the default search engine, and offer an independent operation for Chrome.

Market Implications

The Justice Department’s antitrust case against Google, filed in 2020, seeks to challenge its dominant position in the market. Analysts suggest Judge Mehta may be hesitant to enforce a sale, as he continues deliberating potential remedies that could enhance competition.