Perplexity AI offers Google $34.5 billion for Chrome

On Tuesday, artificial intelligence company Perplexity AI offered Google $34.5 billion for its popular Chrome web browser, which the tech giant could be forced to sell as part of an antitrust proceeding.

The astronomical sum outlined in a letter of intent by the San Francisco startup is nearly double the company’s reported value of $18 billion from a recent funding round.

"This proposal is designed to satisfy an antitrust remedy in the highest public interest by placing Chrome with a qualified, independent operator focused on continuity, openness and consumer protection," Perplexity CEO, Aravind Srinivas said in the letter.

Google is awaiting a district judge’s ruling on the “remedies” to be imposed following last year’s landmark decision that found the company engaged in monopolistic practices in web search.

Lawyers for the U.S. government have urged Google to divest its browser, arguing that artificial intelligence could further strengthen the company’s dominant position.

Google has asked the court to reject the option of spinning off Chrome, with a decision on the matter expected by the end of the month.

Perplexity's bid and its critics

Perplexity’s bid for Chrome “should not be taken seriously,” said Baird Equity Research, an analyst firm that believes the search app is worth more, in a note to investors.

Given that Perplexity already offers a browser competing with Chrome, analysts suggested the company could be trying either to prompt other bids or to “influence the pending decision” in the antitrust case.

Chrome’s potential separation from its parent company comes as other firms, including Microsoft, ChatGPT, and Perplexity, leverage generative artificial intelligence (AI) to collect information from users’ Internet searches.

Google is making massive investments to become a leading AI player, integrating the technology into search and other online applications.