Aravind Srinivas’ Perplexity AI has stunned the tech world with a $34.5 billion all-cash offer to buy Google Chrome, even though the browser is not officially on the market. The bid, far larger than Perplexity’s own $14 billion valuation, comes as the startup aims to secure a stronger foothold in the AI search race. Perplexity is known for making bold moves. Earlier this year, it offered to merge with TikTok’s US business to address concerns over Chinese ownership. Now, its sights are set on Chrome’s estimated three billion users, which would give Perplexity the scale to rival AI competitors like OpenAI.
The offer comes as Google faces mounting legal pressure in the United States over its dominance in online search, raising the possibility, however slim, that Chrome could be forced into new ownership. Here’s the situation broken down into five key points.
Perplexity, only three years old, has already built a reputation for audacious moves. Earlier this year, the company proposed merging with TikTok’s US operations to address political concerns about the app’s Chinese ownership. Now, it has set its sights on Chrome, a browser used by an estimated three billion people worldwide.
If successful, the acquisition would give Perplexity instant scale in its battle against AI rivals such as OpenAI. Chrome is not just a web browser, it is a gateway to enormous amounts of search traffic and user data, both of which are increasingly critical in shaping AI products.
Google’s legal troubles form the backdrop to this offer. A US court recently ruled that the company held an unlawful monopoly in online search. The US Department of Justice has suggested that selling Chrome could be one possible remedy to restore competition.
Google, however, plans to appeal the decision and insists that the market is already competitive. The company has made no indication that Chrome is for sale. Experts note that any forced sale would likely face a long legal process, potentially taking years and reaching the US Supreme Court.
Perplexity has not revealed exactly how it would finance the $34.5 billion purchase. The company says several unnamed investment funds have offered to cover the full amount.
To date, Perplexity has raised about $1 billion from investors including Nvidia and Japan’s SoftBank. According to a term sheet seen by Reuters, the company has pledged to keep Chrome’s underlying open-source code, Chromium, freely available; invest $3 billion over two years; and make no changes to Chrome’s default search engine. Perplexity’s pitch frames the deal as a way to preserve user choice while boosting competition.
Perplexity is not alone in its interest. Earlier this year, court testimony revealed that OpenAI also explored the idea of buying Chrome. Along with it, Yahoo also showed interest in buying Chrome. In 2023, OpenAI approached Google to gain access to its search API for use in ChatGPT, but Google declined, citing competitive concerns.
Since then, OpenAI has relied on Microsoft’s Bing to power its chatbot’s search capabilities. The company admits it is still years away from building a search engine capable of handling the majority of user queries. Like Perplexity, owning Chrome would give OpenAI a direct route to billions of internet users.
Industry analysts remain sceptical that Google would willingly part with Chrome, given its role as a cornerstone of the company’s AI and search strategies. Chrome feeds valuable data into Google’s AI models and supports new features like AI-generated “Overviews” in search results.
The Justice Department, however, argues that Google’s control over search infrastructure could give it an unfair edge in the AI race. For now, Chrome remains firmly in Google’s hands, but as the antitrust trial nears a decision on remedies, tech giants and investors alike are watching closely. Whether the sale happens or not, Chrome’s future will be a central storyline in Big Tech’s AI competition.
