Perplexity AI, an artificial intelligence startup, has shocked the technology industry by submitting an unsolicited $34.5 billion all-cash offer to acquire Google’s Chrome browser. The unprecedented bid comes as the search giant faces mounting regulatory pressure over its alleged monopolistic practices in online searches.
The Audacious Proposal That Caught Silicon Valley by Surprise
The offer, formally submitted to Alphabet Inc.’s Google on Tuesday morning, represents nearly double Perplexity’s current valuation of $18 billion. Despite this significant gap, the three-year-old startup claims that multiple large investment funds have committed to fully financing the acquisition.
Perplexity AI, led by Indian-origin CEO Aravind Srinivas, has emerged as one of the most aggressive challengers in the AI search space. The company has raised approximately $1 billion from prominent investors, including Nvidia, SoftBank’s Vision Fund 2, and Jeff Bezos through Bezos Expeditions.
The timing of this bold move is no coincidence. Chrome, which commands over three billion users worldwide and holds approximately 65% of the global browser market share, has become a central focus in the U.S. Department of Justice’s antitrust case against Google.
Antitrust Battle Creates Unprecedented Opportunity
The Department of Justice has been pursuing Google in a landmark antitrust case, with U.S. District Judge Amit Mehta ruling in August 2024 that the tech giant illegally maintained a monopoly in online search. As part of the proposed remedies, the DOJ has specifically called for Google to divest Chrome, arguing it serves as a “critical search access point” that entrenches Google’s monopoly.
The government’s case centres on Google’s exclusive deals with companies like Apple and Samsung, where Google reportedly pays between $15 billion and $20 billion annually to remain the default search engine. Key aspects of the DOJ’s case include:
- Google’s $26.3 billion in payments for default search placements in 2021 alone
- Approximately 70% of search queries in the U.S. occurred through Google’s default portals
- Chrome serves as both a data collection tool and a gateway to Google’s search empire
Judge Mehta is expected to announce his ruling on the remedies phase as early as this month, potentially marking one of the most significant corporate breakups in decades. While his August 2024 ruling established that Google operates as a monopolist, the upcoming remedies phase decision—which could potentially mandate Chrome’s divestiture—remains pending. This distinction is crucial, as Perplexity’s offer is contingent on regulatory action that has not yet been determined.
What Perplexity’s Offer Includes
According to the term sheet reviewed by sources, Perplexity’s acquisition proposal includes several significant commitments designed to address regulatory concerns:
Financial Commitments:
- $34.5 billion all-cash offer with no equity component
- An additional investment of $3 billion over the next two years for Chrome development
- Retention offers for substantial portions of Chrome’s engineering talent
Operational Guarantees:
- Maintaining Chrome’s underlying Chromium code as open source
- Keeping Google as Chrome’s default search engine unchanged
- No “stealth modifications” to the browser’s core functionality
- Preservation of user choice and data protection standards
The proposal deliberately avoids equity involvement to minimise potential antitrust complications while ensuring continuity for Chrome’s massive user base.
Industry Rivals Circle the Prize
Perplexity is not alone in its interest in Chrome. During testimony at Google’s antitrust trial, OpenAI’s ChatGPT head of product Nick Turley confirmed that his company would also be interested in acquiring Chrome if forced divestiture occurs. OpenAI has already hired former Google vice presidents who helped develop Chrome and is reportedly developing its AI-powered browser.
Other entities that have expressed interest include Yahoo, Apollo Global Management, and various equity firms. DuckDuckGo CEO Gabriel Weinberg has estimated Chrome’s potential forced-sale value at no less than $50 billion, suggesting Perplexity’s bid may be conservative.
Industry observers note that Perplexity’s bid, while generating significant attention, faces the fundamental challenge that Google is under no current obligation to sell Chrome unless compelled by final court remedies—a process that could take years to resolve through appeals.
The Strategic Imperative Behind the Bid
For Perplexity, acquiring Chrome represents a transformative opportunity in the intensifying AI search wars. The company’s AI-powered search engine, which provides conversational answers with cited sources, has seen remarkable growth from a $500 million valuation at the start of 2024 to $18 billion by July.
Access to Chrome’s three billion users would provide Perplexity with an unprecedented distribution advantage against competitors like OpenAI’s ChatGPT and Google’s AI-enhanced search features. The browser integration has been crucial to Google’s ability to promote AI features like “AI Overviews” while fending off challengers in the generative AI space.
Chrome also serves as a critical data collection point for understanding user behavior, search patterns, and web navigation—intelligence that proves invaluable for training advanced AI models. This data advantage has been central to Google’s ability to maintain its dominance even as new AI-powered search alternatives emerge.
Perplexity’s Track Record of Bold Moves
This Chrome bid represents the latest in a series of ambitious acquisition attempts by Perplexity. In January 2025, the company submitted a revised merger proposal for TikTok U.S., offering to create a new entity that would give the U.S. government up to 50% ownership following a future IPO.
The TikTok proposal, valued at “well north of $50 billion,” would merge Perplexity with TikTok’s U.S. operations while excluding the platform’s core recommendation algorithm. Although ByteDance has been reluctant to sell, Perplexity presented the deal as a merger instead of an acquisition to alleviate national security concerns.
These bold moves demonstrate CEO Aravind Srinivas’s aggressive approach to transformative deals that generate significant media attention and position the company as a serious player in major industry consolidations.
Google’s Response and Industry Scepticism
Google has not responded to requests for comment regarding Perplexity’s Chrome offer. The company has consistently opposed any breakup scenario, describing the DOJ’s proposals as “wildly overbroad” and arguing they would harm innovation, consumer security, and privacy.
Google’s attorneys have maintained that Chrome would not function effectively as an independent entity, though the existence of multibillion-dollar agreements for search placement suggests otherwise. The company plans to appeal any adverse ruling, potentially extending legal proceedings for years.
Industry analysts remain sceptical about the likelihood of Google voluntarily selling Chrome. Technology investor Heath Ahrens characterised Perplexity’s offer as a “stunt” that significantly undervalues Chrome’s actual worth, given its market reach and data assets.
Crucially, Google has shown no indication of willingness to sell Chrome voluntarily and has consistently maintained that it will appeal any adverse antitrust ruling, potentially extending legal proceedings for years and making any forced divestiture uncertain at best.
The Broader Implications for Tech Regulation
The Perplexity bid occurs amid a broader government crackdown on Big Tech monopolies. Beyond the search case, Google faces a separate antitrust ruling over its digital advertising network, with remedy hearings scheduled for later this year.
The potential forced breakup of Google would represent the largest corporate divestiture since AT&T’s breakup in the 1980s. Such action would set a significant precedent for regulating other tech giants and could reshape competitive dynamics across the digital economy.
The stakes extend beyond search to encompass:
- Control over AI development and deployment
- Access to user data for training advanced models
- Distribution channels for emerging technologies
- The future architecture of internet access
What Happens Next
Judge Mehta’s upcoming ruling will determine whether Google must divest Chrome and accept other remedies proposed by the DOJ. Regardless of the ruling, Google has indicated that it will pursue appeals, which could lead to potentially years of litigation.
Perplexity views the Chrome bid as a strategic positioning and public relations opportunity, showcasing the startup’s aspirations and underscoring the significant stakes in the AI search competition. Whether the offer gains serious consideration may depend entirely on the outcome of the federal antitrust case.
The broader technology industry is watching closely, as the resolution could fundamentally alter how Americans access information online and determine which companies control the gateways to the internet in the AI era.
As this unprecedented situation unfolds, one thing remains clear: the battle for control of web browsing and search represents far more than corporate rivalry—it will shape the digital landscape for decades to come.
