Perplexity AI Offers Billions to Buy Chrome - Latest News

Perplexity Makes $34.5 Billion Offer to Acquire Chrome

AI-powered search engine Perplexity has made an unsolicited offer to purchase Chrome from Google for $34.5 billion in cash, as reported by Reuters and confirmed by Perplexity to TechCrunch.

Commitment to Open Source

Perplexity has stated that its offer includes a commitment to maintain Chromium, Chrome’s underlying engine, as an open-source project. Furthermore, the company pledges to invest $3 billion into the continued development of this open-source initiative.

Maintaining User Preferences

A key aspect of the offer is a promise not to alter the default settings for Chrome users. Specifically, Perplexity intends to keep Google as the default search engine, rather than promoting its own AI-driven search option.

Google's Response

Google has not yet issued a comment regarding the offer. TechCrunch indicates they will provide updates as more information becomes available.

Context of DOJ Antitrust Case

This bid follows a proposal by the Department of Justice in March, suggesting that Google be compelled to sell Chrome. This recommendation stemmed from a court ruling that found the tech giant had engaged in illegal practices to sustain a monopoly in the online search market.

Google has expressed its intention to contest this ruling and has not agreed to sell Chrome.

Potential Court Ruling and Timeline

A Perplexity spokesperson anticipates that the court will soon establish the terms for remedies, potentially later this month. This occurs alongside another federal case where Google is accused of illegally monopolizing the adtech sector, with the DOJ proposing a divestment of adtech products or a business breakup.

Previous Interest in Chrome

Following the DOJ’s initial proposal to force a sale of Chrome, both OpenAI and Perplexity had previously indicated their interest in acquiring it. Given Chrome’s dominant 68% market share (according to Statcounter data), it is expected that numerous global entities would submit bids if a sale is mandated.

Valuation Considerations

The CEO of competing search engine DuckDuckGo estimated in April that Chrome could be valued at “upwards of $50 billion.” If Perplexity’s offer is accepted, it could represent a significant bargain.

Financial Implications for Perplexity

The $34.5 billion offer substantially exceeds the capital Perplexity has raised from investors and its current valuation. Estimates from PitchBook indicate that Perplexity has secured approximately $1.5 billion in funding, including a recent $100 million extension round that valued the company at $18 billion.

Recent Developments at Perplexity

Last month, Perplexity launched its own web browser, Comet, as part of its strategy to expand its AI search business independently. This move aims to reduce reliance on browsers owned by its primary competitor, Google.

Additional Business Ventures

Furthermore, Perplexity reportedly submitted a bid to merge with TikTok last month, demonstrating its broader ambitions for growth and market expansion.