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AI search startup Perplexity AI has thrown down the gauntlet with a bold $34.5 billion all-cash bid to acquire Google’s Chrome browser. The move, spearheaded by CEO Aravind Srinivas, positions the relatively young company as a potential disruptor in the evolving AI-powered browser market, despite its own $18 billion valuation. Perplexity claims to have secured funding commitments to back the ambitious proposal.

Chrome, a dominant browser with over 3 billion users, offers access to a vast trove of search traffic and user data, making it a strategic asset in the AI landscape. Perplexity has stated its intention to maintain Chrome’s open-source nature through Chromium, invest $3 billion over two years, and retain Google as the default search engine.

The acquisition would significantly accelerate the growth of Perplexity’s AI browser, Comet, pitting it against rivals like OpenAI, which is also developing its own browser. However, industry analysts are questioning whether Perplexity’s offer is a genuine attempt to acquire Chrome or a sophisticated PR play. The bid keeps Perplexity in the spotlight, signals to regulators its potential role in any forced divestiture of Chrome due to Google’s antitrust case, and reinforces its credibility as a serious player in the browser space.

Google, however, appears unwilling to part with Chrome and is fighting the U.S. ruling that found it to have an unlawful search monopoly. Even if regulators mandate divestiture, appeals could delay such a move for years. Critics suggest Perplexity might be better served by focusing on enhancing Comet and boosting its marketing efforts rather than waiting for a potential sale that may never materialize. Some even speculate that Google might choose to shut down Chrome entirely rather than cede it to a competitor. Information on this topic originated from a Reddit post in the Artificial Intelligence subreddit: [https://old.reddit.com/r/artificial/comments/1mp6uxf/why_perplexity_will_not_buy_chrome/]