Artificial Intelligence startup Perplexity has made a bold offer to acquire Google’s Chrome browser for $34.5 billion, to get ahead of a potential requirement for Google to sell the web browser in US antitrust proceedings.
The unsolicited bid, which Perplexity intends to fund with the help of outside investors, was sent to Google on Tuesday morning, Bloomberg reported, citing a Perplexity spokesperson. This move by Perplexity comes after its rival startup OpenAI also expressed interest in acquiring Chrome, which is a significant way people access the web on PC’s
The startup company has assured the users that it would not make any “stealth modifications” to Chrome, calling it a commitment to continuity. Addressing any antitrust concerns related to the deal, Perplexity also said that the offer to Google does not include any equity in Perplexity. While Alphabet Inc.’s Google has not yet responded to the news about the offer.
Last year, a US federal judge said that Google has an illegal monopoly on internet search. Following this, the US government proposed changes, including requiring Google to sell the Chrome browser and license the search data to competitors.
{{/usCountry}}Last year, a US federal judge said that Google has an illegal monopoly on internet search. Following this, the US government proposed changes, including requiring Google to sell the Chrome browser and license the search data to competitors.
{{/usCountry}}Further, US District Judge Amit Mehta, who heard the case related to Google's monopoly, is expected to issue a ruling in the coming days with remedies to prevent the company from monopolising the online search market.
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However, questions are being raised about how the San Francisco-based startup Perplexity could afford to follow through with its Google offer. Earlier this year, it raised $100 million in a round of funding that valued it at $ 18 billion, Bloomberg reported.
Meanwhile, the Perplexity Chief Business Officer Dmitry Shevelenko said that, “multiple large investment funds have agreed to finance the transaction in full,” while declining to name the firms.
This is not the first instance of Perplexity making an offer for a major internet property ahead of a forced transition. Earlier this year, it also submitted a bid to TikTok parent ByteDance Ltd. to merge with its US operations and create a new entity. This was amid TikTok facing a US ban without a deal.
Web browsers have recently become significant as AI companies are seeking to build agents which would complete simple tasks for users, including online shopping.
If the offer gets approved, Perplexity has claimed that it would invest $3 billion over the next two years in Chrome and Chromium and “extend offers to a substantial portion of Chrome talent.”