Perplexity AI offers $34.5bn to acquire Google Chrome

(Web Desk): AI startup Perplexity AI has made a $34.5 billion offer to purchase Google’s popular web browser, Chrome. The offer was made on Tuesday through a "letter of intent," a copy of which was received by AFP.

According to Perplexity CEO Aravind Srinivas, the proposal aims to implement a potential outcome of the ongoing antitrust case in the public interest. The goal is to hand over Chrome to an independent and trustworthy entity that can ensure continuity, transparency, and consumer protection.

Google is currently awaiting a ruling from US District Court Judge Amit Mehta, following a landmark decision last year in which Google was found guilty of maintaining an illegal monopoly in online search. US government lawyers have argued in court that Google should be forced to sell Chrome, claiming that artificial intelligence could further entrench its monopoly in the future.

However, Google has appealed for the rejection of this proposal, and Judge Mehta’s decision is expected by the end of this month. Google’s attorney, John Schmidtlein, argued that more than 80% of Chrome’s users are outside the US, and selling it would have global repercussions — "a sold Chrome would be just a shadow of its current self."

According to analysts at Baird Equity Research, Perplexity’s offer significantly undervalues Chrome and should not be taken seriously. Experts believe that since Perplexity already operates a browser competing with Chrome, the offer may be a tactic to prompt other potential buyers to bid or to influence the outcome of the antitrust case.

Meanwhile, Jennifer Huddleston, a technology policy expert at the Cato Institute, warned that forcing Google to sell Chrome or banning default agreements could harm innovation and make it harder for smaller companies to compete.

This development comes at a time when companies like Microsoft, ChatGPT, and Perplexity are rapidly advancing in providing information through generative AI, while Google is also heavily investing in integrating AI into its search and other online services.