Perplexity's Ambitious Bid to Acquire Chrome from Google
In the midst of Google's antitrust challenges, Perplexity has stepped forward with a bold proposition. Despite not having the necessary funds, the AI start-up has offered a staggering $34.5 billion to acquire the Chrome browser from Google. This move comes as Google grapples with potential regulatory mandates to divest its market-leading browser.
Perplexity, a company riding the wave of artificial intelligence innovations, has managed to capture significant investor interest, boasting a valuation of $14 billion, despite its total fundraising reaching only $1 billion. The firm has made headlines as its AI-driven search solution finds its way into smartphones and their custom Comet browser.
The extraordinary offer from Perplexity seems financially implausible at first glance. However, the pervasive enthusiasm for AI advancement has enabled the company to procure promises for funds primarily through venture capital backing. Yet, details of these financial commitments remain sparse.
Numerous players in the tech domain expressed interest in Chrome, with testimonies during legal trials revealing ambitions to reshape the browser technologies with AI. OpenAI, for example, suggested plans to tailor Chrome as an AI-optimized experience should they come to own it.
Google has fiercely resisted the notion of relinquishing its browser, arguing that such measures are excessively interventionist. Chrome’s foundation, Chromium, powers several non-Google browsers, emphasizing its significance beyond Google’s direct operations.
Perplexity's offer also includes ensuring Chromium remains open source, with promises not to alter Chrome’s default search engine. They're setting aside $3 billion to manage Chromium operations over a two-year span.
The proposal from Perplexity remains unsolicited, with no current indication of Google’s willingness to entertain it, even amidst court rulings. Speculations during legal proceedings estimate Chrome's value much higher, with suggestions reaching into tens of billions of dollars. Nevertheless, the strategic advantage of the data flow through Chrome might mean any sale is unfavorable for Google's AI pursuits.
Any decision by Judge Amit Mehta to require a sale would initiate extended legal wrangling, with anticipated resistance towards potential buyers like Perplexity. Public sentiment may also be opposed to an AI-centric firm controlling Chrome, despite longstanding data privacy debates surrounding Google.
