Perplexity AI Makes Bold $34.5B Cash Bid for Google’s Chrome Browser

Perplexity AI surprised the tech world on Tuesday with a bold $34.5 billion offer to acquire Google’s Chrome browser.

The move comes at a time when Google faces antitrust scrutiny in the United States, raising questions about whether the internet giant may eventually be forced to divest one of its most important products.

A Bold Proposal Amid Antitrust Pressure

In a letter of intent, Perplexity CEO Aravind Srinivas described the offer as a way to “satisfy an antitrust remedy in highest public interest by placing Chrome with a capable, independent operator focused on continuity, openness, and consumer protection.”

The offer comes as US District Judge Amit Mehta weighs remedies following a landmark ruling that found Google had illegally maintained a monopoly in online search.

Government attorneys have argued that Chrome should be spun off, warning that artificial intelligence could increase Google’s dominance over internet access. Google, however, has urged the court to reject the idea of divestment.

Analysts Skeptical of the Bid

Although Perplexity’s offer caught attention, analysts from Baird Equity Research noted it “vastly undervalues Chrome and should not be taken seriously.”

They suggested that the startup might be trying to spark other bids or influence the judge’s decision in the ongoing case.

Baird also pointed out that Perplexity already operates a competing browser, meaning it would see an independent Chrome as an advantage in gaining browser market share.

Google Pushes Back Against Divestment

Google’s legal team has strongly opposed the idea of selling Chrome. The company argues that forcing a sale would damage innovation, weaken the product, and have global consequences.

Jennifer Huddleston, a senior fellow at the Cato Institute, warned, “Forcing the sale of Chrome or banning default agreements wouldn’t foster competition. It would hobble innovation, hurt smaller players, and leave users with worse products.”

Google attorney John Schmidtlein emphasized that Chrome’s global user base complicates any potential spinoff. “Any divested Chrome would be a shadow of the current Chrome,” he told the court.

Chrome’s Global Importance

Chrome is not just a browser. With over three billion users worldwide, it serves as a vital entry point to Google’s search engine, advertising network, and cloud services.

Analysts agree that removing Chrome from Google would weaken its integration with these systems, reducing its overall value.

At the same time, competitors such as Microsoft, ChatGPT, and Perplexity are pushing AI-powered tools to reshape how users find information online.

Google is investing heavily in AI, including new features such as AI-generated search overviews, making Chrome central to its future strategy.

Aravind Srinivas: The Man Behind the Offer

Perplexity AI’s co-founder and CEO, Aravind Srinivas, was born in Chennai, India, and studied at IIT Madras before pursuing a PhD in Artificial Intelligence at UC Berkeley.

His career included working with AI pioneer Yoshua Bengio and a stint at Google, where he gained firsthand insight into search and internet technologies.

In 2022, Srinivas co-founded Perplexity AI with Denis Yarats, Johnny Ho, and Andy Konwinski. The company launched as an AI-powered search engine designed to deliver conversational answers using real-time data.

A Small Startup with Big Ambitions

Perplexity AI is only three years old and was recently valued at $14 billion. It has raised around $1 billion from investors such as Nvidia and SoftBank.

However, funding a $34.5 billion cash deal would require substantial outside investment.

The company has already introduced its own AI-powered browser, Comet, and continues to pitch itself as a challenger to traditional search engines.

The proposed acquisition of Chrome would give it access to a massive user base and boost its competition against larger rivals like OpenAI.

A Controversial Yet Strategic Move

Some analysts and social media users have dismissed the bid as unrealistic, pointing out Chrome’s deep ties to Google’s systems.

Others see it as a strategic publicity move that places Perplexity at the center of the debate on internet competition and antitrust remedies.

According to documents seen by Reuters, Perplexity’s proposal includes a commitment to keep Chrome’s open-source codebase, invest $3 billion over two years, and maintain Chrome’s default search settings.

The company highlighted that the offer contains no equity component, aiming to ease concerns about user choice and market competition.

Google’s Reluctance and the Road Ahead

Despite the bold bid, industry experts believe Google is unlikely to sell Chrome. The browser remains critical to Google’s AI push and broader business ecosystem.

Any separation would risk diminishing Chrome’s capabilities and weakening its integration with Google’s other services.

As Judge Mehta prepares his ruling, speculation continues about whether divestment could become a reality. For now, Google maintains its resistance, while Perplexity’s offer keeps the spotlight on the growing battle over the future of internet access and competition.