AI start-up Perplexity makes surprise takeover bid for Google Chrome

Artificial intelligence (AI) start-up Perplexity has put in a shock $34.5 billion takeover bid for Google Chrome’s internet browser.

The artificial intelligence (AI) start-up Perplexity has made a shock $34.5 billion takeover bid for Google Chrome’s internet browser.

Perplexity believes that moving Chrome to an independent operator committed to user safety would be beneficial for the public and have argued as much in a letter to Sundar Pichai – the boss of Google’s owner Alphabet.

Google have not announced any plans to sell Chrome, which is the world’s most popular web browser with more than three billion estimated users.

One investor in the tech industry has labelled the offer a “stunt” as it is considerably lower than Chrome’s true value and expressed doubt as to whether the platform is actually for sale.

Google’s dominance of the search engine market has come under increasing scrutiny as the tech behemoth has found itself caught up in legal wrangling through two antitrust cases.

A federal judge in the US is expected to issue a ruling later this month that could force Google to break up its search business.

The company has said it will appeal such a ruling and described the idea of spinning off Chrome as an “unprecedented proposal” that would be harmful for both consumers and security.

A spokesman for Perplexity says that the takeover bid is an “important commitment to the open web, user choice, and continuity for everyone who has chosen Chrome”.

As part of their proposal, Perplexity will continue to have Google as the default search engine within Chrome – although users will have the chance to adjust their settings.

The firm has also pledged to maintain and support Chromium, the widely used open-source platform that supports Chrome and other browsers such as Microsoft Edge and Opera.

Perplexity – which has an estimated value of $18 billion – has not responded to questions about how the deal will be funded and start-up founder Heath Ahrens is unconvinced by the bid.

He said: “The offer isn’t serious, but if someone like Sam Altman or Elon Musk tripled it, they could genuinely secure dominance for their AI.”

Meanwhile, Tomasz Tunguz from Theory Ventures says the offer is much lower than the browser is worth “given the value of Chrome is likely significantly higher – maybe 10 times more valuable than the bid or more”.