Why has Perplexity made this bold bid?
Perplexity AI floated an offer for Google Chrome to the tune of $34.5 billion, a proposal that has been awe-inspiring for the tech community. The figure itself is almost twice the valuation Google had in July, which stood at $18 billion.
This happens as Google has been under increasing antitrust scrutiny in the United States. Leadership at Perplexity believes that by acquiring Chrome, they would be able to address competition concerns brought up by regulators.
The announcement was made to uphold transparency and help garner support from investors and policymakers. The actual financing of the bid will be through a mix of investor money and strategic partners.
There are early indications that the leadership has commitments from multiple backers willing to support the acquisition. For the company, this is more than a mere business purchase; it’s an attempt to reshape the web browser market.
Perplexity AI offers $34.5B for Google Chrome, nearly double July’s $18B valuation.
What changes will Perplexity make?
If this arrangement goes through, Perplexity pledges to continue keeping Chrome’s Chromium engine open source. It has also declared that the default search engine of Chrome shall remain Google.
This whole approach is meant to somehow reassure both Google and the regulators that users’ ability to choose will not be curtailed.
As part of this transfiguration, Perplexity has undertaken an investment of $3 billion in the next two years of Chrome development, claiming the funds shall be channelled towards security improvements, speed enhancements, and AI integration.
Yet Perplexity insists it’s interested in having Chrome remain a global, trusted platform, opposed to a closed ecosystem.
Perplexity is valued at $18 billion
With its July valuation of $18 billion, this bid stood out for its unusual aggression. The company is targeting the purchase of an asset considered central to Google’s AI aspirations.
The offer came right on the heels of the launch of Comet, its experimental AI-powered browser. Analysts have noted that the descent of Comet may have fueled Perplexity’s challenge to Chrome.
Yet, buying Chrome instantly bestows it with billions of users from across the globe. Such a leap in scale cannot be achieved through organic growth, at least not in the short term.
Perplexity AI team at TechCrunch Disrupt.
Is Google likely to accept the offer?
Industry observers feel the proposal would be impossible for Google to agree to just like that. More so, Chrome is a strategic asset playing a central role in Google’s online advertising and AI ecosystems.
Selling Chrome would mean a total shift in Google’s business direction. Even if Google avoids it, the case may soon pile onto antitrust pressure.
The DOJ is jockeying to force some remedies on Google that would curtail its market power. Judge Amit Mehta is expected to deliver a ruling later this month that would provide texture to the browser market.
Perplexity aims to change the narrative
The bid could be nothing more than a publicity stunt. Making a bold public offer places what otherwise would be a now very quiet company and its platform into the limelight for both tech and financial circles.
Perplexity also hopes to position itself as the willing alternative owner of Chrome should regulatory bodies force divestiture. Such moves can shift conversations in the courtroom and the investment community.
Even in the absence of a purchase, it benefits Perplexity to be seen as a hopeful and able contender. It signifies how aggressive marketing and positioning may be critical towards building the market image of a brand.
Google’s antitrust battle continues
Google has been embroiled for some time now in a case wherein it is alleged to have suppressed competition in the area of web browsing and search. The Justice Department case has centred squarely on control of search defaults and control of browser market share.
If Judge Mehta rules against Google, then divestiture of Chrome could very well be speculated on as a remedy. Perplexity made its offer at the opportune moment, exploiting this uncertainty.
It has positioned itself as a “responsible steward” of the worldwide user base of Chrome. Such positioning attempts to appeal to regulators and the public alike in portraying itself as pro-competition.
Also Read: GPT-5 Launch: OpenAI Unveils Latest ChatGPT Upgrade
Investor outlook
For investors, the bid spells risk and opportunity. Backing Perplexity could put one in control of a platform with more than 3 billion users. A potential acquisition of this size would mean integrating a product far larger than any Perplexity has dealt with in its history.
A good strike would be a big lift to Perplexity, placing it among the upper echelon of global tech companies. Failure should cast a spotlight on Perplexity while opening doors to potential partnerships.
In either event, the company has captured the attention of the world valuable commodity in its own right.
