Perplexity AI, the US-based artificial intelligence start-up, has made an unsolicited $34.5 billion (about £27.3 billion) offer to acquire Google Chrome from parent company Alphabet, surprising the global tech industry.
The proposal comes amid ongoing antitrust scrutiny of Google's dominance in the browser market. Perplexity says the acquisition would help address regulatory concerns, but analysts have questioned both the seriousness and feasibility of the bid.
Rapid Rise of Perplexity
Founded in 2022, Perplexity AI has quickly become a notable challenger in the AI-powered search engine market. The company's backers include Jeff Bezos, Nvidia and SoftBank, and it was valued at $18 billion (approximately £14.2 billion) as of July 2025, according to Bloomberg. Its core product is an AI-driven search engine offering conversational answers rather than traditional search results.
In 2024, Perplexity launched its own browser, Comet, as part of its strategy to compete directly with Google and Microsoft, the Financial Times reported. The firm says acquiring Chrome would give it immediate access to a vast user base, accelerating its move into mainstream browser adoption.
Details of the $34.5B Offer
Perplexity's proposal frames the purchase as a potential remedy to antitrust actions. The US Department of Justice has previously suggested that Google could be required to divest Chrome to address alleged monopolistic practices in search and browser markets, Investopedia reported.
Under the bid, Perplexity says Chrome would remain independent, with the Chromium codebase staying open-source. It has also pledged to invest $3 billion (approx. £2.37 billion) over two years to upgrade the browser's infrastructure and recruit additional engineering talent.
Investor and Market Reactions
Market response has been mixed. Some analysts told Reuters the offer is a 'bold' signal of Perplexity's ambition to position itself alongside the biggest names in technology. Others question how the company could finance a deal worth almost double its current valuation.
Shares in Alphabet rose 1.2% in after-hours trading following news of the bid, while privately held Perplexity's valuation was reportedly unchanged, according to MarketWatch. Technology publication The Information noted that some industry observers believe the proposal may be aimed at generating publicity rather than securing a sale.
Explain? They built their own browser, then offer to buy something they can’t afford and google would never sell?
— T.Fraser (@t_fraser_) August 12, 2025
this is a pure publicity stunt. why would google sell for anything less than a $100Bn
— Alchemist Investor (@alchemy_invest) August 12, 2025
Potential Industry Impact
If accepted, the acquisition could have major implications for browser and search engine competition. Chrome currently holds an estimated two-thirds of the global browser market, according to Global StatCounter. Analysts say a transfer of ownership could affect advertising revenues, search engine integration and competitive dynamics with companies such as Microsoft, Apple and Mozilla, Fortune reported.
While neither UK nor EU regulators have called for Google to divest Chrome, both have active investigations into its advertising practices and browser-related data handling. Any sale would likely trigger fresh scrutiny on both sides of the Atlantic.
A High-Profile Gambit
Perplexity's $34.5 billion bid underscores the shifting competitive landscape as AI firms seek to challenge established tech giants. Whether a calculated negotiation tactic, an attempt to attract investment or a publicity move, the offer has sparked widespread debate in the industry.
For now, there is no indication that Alphabet will engage with Perplexity's approach. The proposal remains a high-profile statement in the escalating rivalry between traditional search providers and AI-driven challengers.
