Perplexity offers $34.5 billion to acquire Google Chrome amid antitrust case

San Francisco: AI startup Perplexity has made a move in the ongoing antitrust saga surrounding Google, offering $34.5 billion to acquire the tech giant’s Chrome web browser.

The offer, presented in a letter of intent on Tuesday, comes as Google awaits a federal court ruling that could force it to divest key parts of its business.

The proposed acquisition, nearly double Perplexity’s own reported $18 billion valuation, is aimed at satisfying potential antitrust remedies with what Perplexity describes as a public-first approach.

"This proposal is designed to satisfy an antitrust remedy in highest public interest by placing Chrome with a capable, independent operator focused on continuity, openness, and consumer protection," Perplexity CEO Aravind Srinivas stated in the letter, a copy of which was obtained by AFP.

Move amid the antitrust case?

The bid lands as US District Court Judge Amit Mehta prepares to rule on what penalties Google must face after being found to have maintained an illegal monopoly in online search. The US Department of Justice has argued that Google’s hold on the browser market, especially with the integration of emerging AI tools, strengthens its dominance and should be addressed by forcing the company to sell Chrome.

Google has pushed back against that recommendation, arguing that divestiture would harm competition rather than help it. Mehta’s decision is expected by the end of the month.

Google has not yet commented on the offer.

How is the industry reacting to this move by Perplexity AI?

Industry analysts are sceptical. Baird Equity Research called Perplexity’s proposal unrealistic and said it "should not be taken seriously." In a note to investors, the firm suggested the offer may be more strategic than sincere.

"Given that Perplexity already has a browser that competes with Chrome, the San Francisco-based startup could be trying to spark others to bid or influence the pending decision in the antitrust case," the note said. "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."

The Justice Department’s proposal also leaves open the possibility of forcing Google to sell off its Android mobile operating system. The tech firm argues that such measures are extreme and unjustified.

"Forcing the sale of Chrome or banning default agreements wouldn't foster competition," said Jennifer Huddleston, senior fellow in technology policy at the Cato Institute. "It would hobble innovation, hurt smaller players, and leave users with worse products."

Google attorney John Schmidtlein emphasised the global implications of any forced sale, noting that the majority of Chrome users reside outside the United States.

"Any divested Chrome would be a shadow of the current Chrome," he argued. "And once we are in that world, I don't see how you can say anybody is better off."