AI start-up Perplexity makes $34.5bn bid for Google Chrome
Key Points
- 1Artificial intelligence startup Perplexity AI has made a surprise and widely criticized $34.5 billion bid for Google Chrome, which industry experts deem an unfunded "stunt" significantly below Chrome's true value.
- 2Perplexity asserts the bid promotes user choice and the open web, coming amid Google's antitrust challenges and a potential judicial ruling that could compel Google to divest parts of its search business.
- 3However, Perplexity, known for its AI-powered browser Comet and backed by Jeff Bezos, has faced controversy, including accusations of copyright infringement from media organizations and a previous attempt to acquire TikTok.
On August 13, 2025, artificial intelligence startup Perplexity AI, founded three years prior and backed by notable investors including Amazon founder Jeff Bezos and chip manufacturer Nvidia, made an unsolicited $34.5 billion (£25.6 billion) takeover bid for Google Chrome, the world's most popular web browser with an estimated three billion users. The bid comes amidst significant regulatory pressure on Google, specifically anticipating a US federal judge's ruling expected later that month, which could mandate the breakup of Google's search business due to ongoing antitrust cases concerning its dominance in search and online advertising. Google has previously stated it would appeal such a ruling, deeming the spinning off of Chrome an "unprecedented proposal" detrimental to consumers and security.
Perplexity AI, valued at an estimated $18 billion in July 2025, articulated its strategic rationale for the bid as an "important commitment to the open web, user choice, and continuity for everyone who has chosen Chrome." In a letter to Sundar Pichai, CEO of Google's parent company Alphabet, Perplexity emphasized that transitioning Chrome to an "independent operator committed to user safety" would benefit the public. Perplexity's proposal includes maintaining Google as the default search engine within Chrome, with user configurability, and continuing to support Chromium, the open-source platform underpinning Chrome and other browsers like Microsoft Edge and Opera. However, Perplexity did not disclose how the proposed deal, an acquisition transaction, would be funded.
Industry reactions to the bid were largely skeptical and critical. Investors such as Judith MacKenzie, head of Downing Fund Managers, described it as "unsolicited" and not yet funded. Technology industry investor Heath Ahrens characterized the bid as a "stunt" that significantly undervalues Chrome, citing its "unmatched data and reach." Ahrens further commented that the offer is "not serious," suggesting that a bid "tripled" by prominent figures like Sam Altman or Elon Musk could genuinely establish dominance in the AI sector. Tomasz Tunguz from Theory Ventures estimated Chrome's true valuation at "maybe ten times more valuable than the bid or more."
Perplexity AI positions itself as a rising contender in the generative AI space, alongside industry leaders like OpenAI's ChatGPT and Google's Gemini. The company launched its own AI-powered browser, Comet, in July 2025. Perplexity has faced controversies, particularly from media organizations, regarding alleged copyright infringement. In June 2025, the BBC sent a legal letter accusing Perplexity's CEO, Aravind Srinivas, of reproducing BBC content "verbatim" without authorization. Perplexity responded by asserting that the BBC's claims were an effort to "preserve Google's illegal monopoly," without elaborating on the relevance of Google to the BBC's position. Earlier in 2025, Perplexity also gained attention for offering to acquire the American operations of TikTok.