Alphabet Rejects Perplexity's $34.5 Billion Offer for Google Chrome Acquisition, Future Remains Uncertain

Perplexity has offered to buy Google Chrome for $34.5 billion, but that may not be enough for Alphabet to sell. The offer is larger than Perplexity's valuation of $18 billion, but Alphabet has other options, including appealing the court's decision. CEO Sundar Pichai and Alphabet haven't shown interest in selling Google Chrome, which is crucial for data collection for ads. A bidding war may erupt, but it may be meaningless as Alphabet is unlikely to sell Chrome.

In a daring move that has sent shockwaves through the tech industry, Perplexity AI has offered to acquire Google Chrome for a staggering $34.5 billion. This unsolicited bid, reported by CNBC, comes amidst ongoing antitrust scrutiny of Alphabet Inc., Google’s parent company, which could potentially force the divestiture of the world’s most popular browser [1].

The offer, made by Perplexity’s CEO Aravind Srinivas, is framed as a commitment to preserving an open internet and enhancing user choice and innovation. However, industry observers see it as a savvy publicity stunt, especially given Perplexity’s recent launch of its own AI-infused browser, Comet [1]. The bid arrives just as the U.S. Department of Justice pushes remedies in its monopoly case against Google, where Chrome’s dominance in search distribution has been a focal point.

The broader implications extend to how AI firms are positioning themselves against Big Tech incumbents. OpenAI, for instance, has expressed interest in purchasing Chrome to create an "AI-first" experience [1]. Yahoo and financial backers like JPMorgan Chase have also been mentioned in speculative reports, with some estimating bids could climb to $35 billion or more [1].

Perplexity’s Comet browser, which debuted earlier this year with features like built-in AI assistants for summarizing content and automating tasks, has been praised as a direct shot at Google [1]. However, the $34.5 billion bid raises questions about feasibility—Perplexity’s valuation, bolstered by investors including Jeff Bezos, falls short, suggesting the move is more about generating buzz than a serious takeover [1].

While Perplexity’s offer relies on hypothetical backing, experts question if it’s viable without massive debt or partnerships [1]. Meanwhile, Google’s cloud deals with OpenAI show intertwined dependencies that complicate rivalries [1]. For industry insiders, this episode reveals the aggressive tactics AI startups employ to challenge giants. Whether Perplexity’s gambit leads to an acquisition or merely elevates Comet, it marks a pivotal moment in the evolution of web technologies, where AI integration could redefine user experiences and market power [1].

As the antitrust case unfolds, all eyes remain on Washington’s decisions, which could reshape the digital ecosystem for decades. However, Alphabet has shown no inclination to sell Chrome, with executives dismissing the bid as opportunistic amid legal pressures [1].

References:
[1] https://www.webpronews.com/perplexity-ais-34-5b-bid-to-acquire-google-chrome-amid-antitrust-woes/
[2] https://opentools.ai/news/perplexity-ai-shakes-up-the-tech-world-with-dollar345-billion-bid-for-google-chrome