Artificial intelligence startup Perplexity AI has submitted a surprise $34.5 billion bid to acquire Google’s Chrome browser, CNBC confirmed on Tuesday. The offer comes despite being nearly double Perplexity’s most recent valuation, thanks to backing from several major investors.
In July, Perplexity was valued at $18 billion, following an earlier valuation of $14 billion earlier this year.
No Response Yet from Google
Google has not issued an official response to the takeover proposal. The Wall Street Journal first reported the bid.
Perplexity’s AI Expansion
Best known for its AI-powered search engine, Perplexity delivers concise answers with direct links to source material. Last month, the company expanded into web browsing with the launch of Comet, its own AI-driven browser.
Perplexity is competing in the rapidly growing generative AI market against companies like Meta and OpenAI, all offering lucrative incentives to attract top AI engineers. Major tech firms are investing billions annually in AI infrastructure, while startups are raising significant venture funding to secure advanced computing hardware and top talent.
Earlier this year, Perplexity was approached by Meta for a potential acquisition, but no deal was finalized.
DOJ Push for Chrome Divestiture
The timing of the bid follows a U.S. Department of Justice (DOJ) recommendation that Google divest Chrome. The suggestion comes after Google lost an antitrust lawsuit in which a judge ruled the company had maintained an illegal monopoly in internet search.
The DOJ argues that removing Chrome from Google’s control would level the playing field for rival search engines. Google, however, criticized the proposal as part of a “radical interventionist agenda” and described it as “wildly overbroad.”
Launched in 2008, Chrome plays a key role in Google’s ad targeting by collecting valuable user data.
Not Perplexity’s First Big Swing
This isn’t the first time Perplexity has pursued a bold deal. In January, the company proposed a merger with TikTok, amid uncertainty over the platform’s U.S. operations due to legislation requiring its Chinese owner, ByteDance, to divest. That proposal has not moved forward.
With the DOJ’s proposed Chrome divestiture still under discussion, Perplexity’s high-profile bid adds a new twist to the ongoing battle for dominance in AI and web browsing technology.
