SAN FRANCISCO: Perplexity AI has made an unsolicited $34.5 billion bid for Google’s Chrome browser, CNBC confirmed Tuesday, marking a bold move amid intensifying competition in the generative AI space.
The offer exceeds Perplexity’s most recent valuation of $18 billion, set in July, and nearly doubles its earlier $14 billion valuation. The company said several investors have pledged support for the deal.
Google has not responded to requests for comment. The Wall Street Journal first reported the bid.
Perplexity, known for its AI-powered search engine that delivers concise answers with source links, recently launched its own browser, Comet. The startup is vying for dominance in the generative AI sector, competing with tech giants like Meta and OpenAI, which are investing heavily in infrastructure and talent.
Earlier this year, Meta approached Perplexity about a potential acquisition, but talks did not result in a deal.
The bid follows a U.S. Department of Justice proposal that Google divest Chrome as part of an antitrust ruling. A federal judge determined Google maintained an illegal monopoly in internet search. The DOJ argued that divesting Chrome would level the playing field for rival search engines.
Google has criticized the DOJ’s proposal as “wildly overbroad” and has yet to outline its response to the ruling.
Launched in 2008, Chrome is a key asset for Google, providing user data that fuels its advertising business. The DOJ contends that removing Chrome from Google’s control would disrupt its dominance in search and open access for competitors.