In a bold and strategic move, AI startup Perplexity offered Google on Tuesday a massive $34.5 billion for its popular Chrome web browser, a crucial asset that the tech giant may be forced to sell as part of ongoing antitrust proceedings.
The unsolicited offer, outlined in a letter of intent from Perplexity’s chief executive Aravind Srinivas, comes as a U.S. District Court Judge’s ruling on potential “remedies” against Google is expected by the end of the month. The U.S. government is pushing for a divestiture of the Chrome browser, arguing that its integration with Google’s search engine illegally entrenches a monopoly in the search market and could further solidify the tech titan’s dominance as artificial intelligence transforms how users access information online.
“This proposal is designed to satisfy an antitrust remedy in the highest public interest by placing Chrome with a capable, independent operator focused on continuity, openness, and consumer protection,” said Srinivas in the letter, a copy of which was seen by AFP. The proposed sum is nearly double the valuation of Perplexity, which was reportedly $18 billion in a recent funding round.
Google, which is awaiting U.S. District Court Judge Amit Mehta’s ruling, has strongly urged the court to reject the divestment, claiming the government’s recommendation goes beyond the scope of the suit. Google attorney John Schmidtlein contended that more than 80 percent of Chrome users are outside the United States, meaning divestiture would have global ramifications and that “any divested Chrome would be a shadow of the current Chrome.” Google has offered to make smaller adjustments to its business model instead of a sale. The company did not immediately respond to a request for comment on Perplexity’s bid.
Analysts at Baird Equity Research, however, were skeptical of the offer. They noted that it vastly undervalues Chrome—which they believe could be worth upwards of $100 billion in a forced sale—and “should not be taken seriously.” The analysts theorized that the San Francisco-based startup, which recently launched its own AI-powered browser called Comet, could be trying to spark other bids or “influence the pending decision” in the antitrust case. “Either way, we believe Perplexity would view an independent Chrome — or one no longer affiliated with Google — as an advantage as it attempts to take browser share,” Baird analysts told investors.
Jennifer Huddleston, a senior fellow in technology policy at the Cato Institute, echoed Google’s concerns, arguing that “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.”
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