Perplexity AI makes $34.5bn surprise bid for Google’s Chrome browser

Artificial intelligence startup Perplexity AI has made an unsolicited $34.5 billion all-cash offer to acquire Alphabet’s Chrome browser, a bold move that underscores the growing battle for dominance in the AI-driven search market.

The bid, announced on Tuesday, is more than double Perplexity’s own valuation of $14 billion.

The three-year-old company, led by Aravind Srinivas, has previously floated ambitious takeover ideas, including a proposal earlier this year to merge with TikTok’s United States business.

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Google has not put Chrome up for sale and did not respond to Reuters’ request for comment.

The tech giant is currently appealing a US court ruling that found it held an unlawful monopoly in online search, with the Justice Department pushing for a possible Chrome divestiture as part of the case.

Perplexity, which has raised around $1 billion from backers including Nvidia and Japan’s SoftBank, did not reveal how it intends to finance the bid.

However, it said multiple funds have pledged to cover the offer in full.

The startup already operates its own AI-powered browser, Comet, but acquiring Chrome’s more than three billion users would give it a major edge against rivals like OpenAI, which is also developing an AI browser.

Perplexity has promised to keep Chrome’s open-source foundation, Chromium, accessible, while pledging a $3 billion investment over two years and committing not to alter Chrome’s default search engine.

Shares of Alphabet rose 1.6% in afternoon trading following news of the bid.