AI start-up Perplexity makes $34.5bn bid for Google Chrome

Perplexity AI, a three-year-old generative AI startup valued at $18 billion in July, made an unsolicited $34.5 billion takeover bid for Google Chrome, the world's most popular web browser with an estimated three billion users. The offer is timed ahead of a US federal judge's expected ruling this month that could force Google to break up its search business, potentially spinning off Chrome. Perplexity's backers include Amazon founder Jeff Bezos and chip maker Nvidia, and the company is led by a former Google and OpenAI employee. The firm said the bid reflects an "important commitment to the open web, user choice, and continuity" and sent a letter to Alphabet CEO Sundar Pichai arguing that moving Chrome to an independent operator would benefit the public. Perplexity also noted it would keep Google as the default search engine and continue supporting Chromium, the open-source platform behind Chrome, Microsoft Edge, and Opera.

Industry reactions have been sharply skeptical. Technology investor Heath Ahrens called the offer a "stunt" and "nowhere near Chrome's true value," while Tomasz Tunguz from Theory Ventures estimated Chrome could be worth ten times more. Downing Fund Managers' Judith MacKenzie noted the bid appears unfunded. Perplexity itself is no stranger to controversy: it faced copyright accusations from the BBC and other media organizations, and earlier this year made headlines with an offer to buy the US version of TikTok. The company also recently launched its own AI-powered browser, Comet. Google has previously argued that spinning off Chrome would harm consumers and security, and has vowed to appeal any forced breakup. The bid's outcome remains highly uncertain, but it underscores the strategic importance of browser access for AI-driven search and advertising.