Perplexity AI Secures $34.5 B Deal to Power Google Chrome Browser

Perplexity AI Presents a $34.5 Billion Bid for Google Chrome

Perplexity AI surprised the tech sector by treating Google’s flagship browser as a potential antitrust remedy, offering $34.5 billion in a letter of intent. The proposal is almost double the startup’s recent $18 billion valuation from a funding round.

Antitrust Remedy Specified in Letter

• Remedy Focus – Perplexity’s chief executive, Aravind Srinivas, emphasized that the offer is meant to satisfy public interest by placing Chrome in “the hands of a capable, independent operator” committed to continuity, openness, and consumer protection.
• Single Letter – The letter, a copy of which was seen by AFP, has no other attached documents and was sent on Tuesday.

Judge Amit Mehta’s Pending Ruling

Google is awaiting a ruling from US District Court Judge Amit Mehta on what “remedies” to impose, following a landmark 2023 decision that found the tech giant maintained an illegal monopoly in online search. Mehta is expected to deliver his decision by the end of the month.

Government Attorneys Demand Divestiture

• AI Impact – US government attorneys argue that artificial intelligence could amplify Google’s dominance, making the browser the “go-to window into the internet.”
• Divestiture Request – They have called for Google to divest itself of the Chrome browser as part of the antitrust case.

Analyst Evaluation of Perplexity’s Offer

Baird Equity Research analysts noted that the offer undervalues Chrome and “should not be taken seriously.” They theorized that Perplexity, which already competes with Chrome, might be hoping to inspire other bids or influence the pending antitrust decision. Analysts concluded that an independent Chrome— or one no longer affiliated with Google— would be a strategic advantage as Perplexity seeks to capture browser market share.

Google has not yet responded to a request for comment.

Judge Approaches Unprecedented Move to Split Google’s Chrome

Google’s worldwide popular browser may soon be forced into a spinoff or forced sale by a U.S. judge, a development that could shift the balance of power in online search.

Google Demands a Wider Scope for Judge’s Decision

Google’s lawyers argue that the judge is overreaching by pushing the brand into a sell‑out. They also keep the option open to compel a sale of Android, the mobile operating system that powers billions of smartphones.

Tech‑policy Think‑Tank Questions the Sale’s Benefit

Jennifer Huddleston, a senior fellow at the Cato Institute, warns that requiring Chrome to be sold or default agreements to be prohibited would not spur competition. “It would stunt innovation and hurt smaller players,” she said. “Users would suffer worse products.”

Global Repercussions of a Chrome Divestiture

John Schmidtlein, Google attorney, told the court that even 80% of Chrome users live outside the United States. “Divesting Chrome would paint a thin shadow of our current browser,” he argued. “Once we are in that future, I do not see how anyone can be better off.”

Rivals Exploit Generative AI to Re‑engineer Internet Search

The potential rollback of Chrome comes at a time when rivals such as Microsoft, OpenAI’s ChatGPT, and Perplexity are deploying generative AI to fetch and deliver information in real time to users. Google is investing heavily to lead the charge in AI, weaving the technology into search and other e‑commerce offerings.