Perplexity's Ambitious Bid to Acquire Chrome
After a significant antitrust loss, Google may be compelled to part with its prized Chrome browser. Amidst this backdrop, Perplexity, an AI-focused company, has made headlines by offering an astonishing $34.5 billion to acquire Chrome. Despite the impressive bid, Perplexity doesn't have this amount readily available in cash.
The surge of interest surrounding artificial intelligence has propelled Perplexity into the spotlight, driven by its AI technologies appearing on smartphones and within its proprietary Comet browser. The company has already amassed approximately $1 billion in investments, valuing it around $14 billion, yet its offer for Chrome is more than double its valuation. This is possible due to the ample capital circulating in the AI industry, allowing even cash-strapped firms to rally investment funds.
This all-cash proposal is reportedly backed by various venture funds. Nevertheless, Perplexity has chosen not to disclose the specific details. During the trial proceedings, several competitors of Google showcased their interest in acquiring Chrome, including an executive from OpenAI who envisions transforming Chrome into an AI-centric experience.
Google strongly opposes the divestment of Chrome, arguing that it's a drastic measure. Chrome's significance extends beyond its role as a browser, being the foundation for many browsers like Microsoft's Edge through its open-source Chromium project. Perplexity's offer includes a $3 billion investment to maintain Chromium's operations while pledging to keep it open-source and not alter the default search engine.
Judge Amit Mehta is poised to make a decision on the remedies proposed in this high-profile case shortly. Though Perplexity's offer is timely, there's uncertainty about Google's willingness to divest Chrome promptly. Even if ordered to sell, the actual market value of Chrome, with its potential to assist in developing new AI technologies, might eclipse Perplexity's proposition. Estimates from various analysts, including DuckDuckGo's CEO, range from $50 billion to hundreds of billions.
Should the sale be enforced, legal disputes are likely to ensue, possibly delaying proceedings for extended periods. Perplexity, or any potential buyer, could face resistance from users uneasy about a nascent AI startup gaining control over Chrome. Google's data gathering through Chrome has been ubiquitous, but it's also familiar to those who have utilized it for years.
