AI Startup Perplexity Proposes $34.5 Billion All-Cash Deal For Google’s Chrome Browser

Perplexity AI, led by Aravind Srinivas, has surprised the tech industry with an unsolicited $34.5 billion all-cash offer for Alphabet’s Chrome browser, as per Reuters. The bid, far exceeding the startup’s current valuation, underscores its ambition to accelerate its position in the competitive AI search market.

A Bold Acquisition Move

The 3-year-old startup’s proposal is not its first attention-grabbing move. Earlier in January, Perplexity offered to merge with TikTok U.S. to address concerns over Chinese ownership. Now, the company has turned its sights on Chrome, a browser with over 3 billion users worldwide, which could give Perplexity a significant advantage in the AI-driven search race.

Google Yet To Respond

Google has not publicly responded to the bid. Chrome is not officially for sale, and Google is appealing a U.S. court ruling that found it held an unlawful monopoly in online search. The U.S. Department of Justice has suggested that a divestiture of Chrome could be part of the case’s remedies, with a federal judge expected to rule on this matter later this month.

Funding The Ambitious Offer

Perplexity, valued at $14 billion and having raised around $1 billion from investors including Nvidia and SoftBank, did not disclose specific funding plans.

Strategic Importance Of Chrome

With a new wave of internet users favouring AI-powered tools such as ChatGPT and Perplexity, web browsers have regained strategic significance as gateways to search traffic and valuable user data. Perplexity already offers its own AI browser, Comet, but acquiring Chrome would significantly strengthen its position against rivals like OpenAI, which is also developing its own AI browser.

Commitments In The Bid

According to a term sheet seen by Reuters, Perplexity has pledged to keep Chromium, Chrome’s underlying browser code, open source. It has also committed to investing $3 billion over two years and to making no changes to Chrome’s default search engine. The company emphasises that the offer contains no equity component and aims to preserve user choice while easing competition concerns.

Industry Valuation And Other Interested Parties

While Perplexity’s offer is substantial, it is notably below the $50 billion valuation suggested by DuckDuckGo’s CEO, Gabriel Weinberg. As per news reports, other potential suitors for Chrome include OpenAI, Yahoo, and private equity firm Apollo Global Management, highlighting the intense interest in securing a dominant position in browser-based search.

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Conclusion 

Perplexity’s audacious bid signals the growing importance of browsers in the AI era, where control over user access points can redefine search market dynamics.

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