Perplexity AI bids $34.5B for Chrome
Indian-origin entrepreneur Aravind Srinivas, co-founder and CEO of Perplexity AI, has submitted an unsolicited all-cash offer worth $34.5 billion (around Rs. 3.02 lakh crore) to acquire Google’s Chrome browser—nearly double the AI startup’s own valuation.
The proposal, addressed to Alphabet CEO Sundar Pichai, outlines a plan that Perplexity describes as a proactive response to growing regulatory pressure that could eventually force Google to part with Chrome. The offer includes commitments to keep Chromium open source, retain Google as Chrome’s default search engine, invest $3 billion (approximately Rs. 26,000 crore) over the next two years, and maintain Chrome’s existing workforce to ensure a smooth transition.
According to a term sheet seen by Reuters, Perplexity has proposed to spread the $34.5 billion investment over two years. Notably, the company’s most recent valuation is $18 billion, supported by funding of about $1 billion from backers such as SoftBank and Nvidia. Perplexity stated, “Many funds have offered to finance the deal in full,” but declined to name them.
Perplexity is not the only interested party—Yahoo and Apollo Global Management are also reportedly exploring potential bids. The heightened interest stems from a U.S. court ruling in 2024 that found Google had maintained an unlawful monopoly in online search. The U.S. Justice Department has suggested selling Chrome as a remedy, though Google plans to appeal any such divestiture order, a process that could take years.
Analysts remain sceptical about the likelihood of the deal going through. Industry experts say Google is expected to resist selling Chrome, opting instead to fight the legal battle. DuckDuckGo CEO Gabriel Weinberg commented that Google would not be likely to consider an offer below $50 billion.
Founded in 2022 by Srinivas along with Denis Yarats, Johnny Ho, and Andy Konwinski, Perplexity has quickly gained recognition for its AI-powered ‘answer engine,’ which delivers conversational, cited responses rather than traditional search links. The company has also been developing its own AI browser, Comet, currently in invite-only testing, and acquiring Chrome could potentially expand its reach to over three billion users worldwide.
Born in Madras (now Chennai) in 1994, Srinivas holds dual degrees in Electrical Engineering from IIT Madras and a Ph.D. in Computer Science from UC Berkeley. His early career included research stints at OpenAI, DeepMind, and Google before launching Perplexity.
While the proposed takeover has generated significant attention, industry watchers note it may also be a strategic move to boost Perplexity’s profile, especially as it continues to push its own browser ambitions with Comet.
