- Perplexity AI has submitted a $34.5 billion unsolicited bid to acquire Google Chrome from Alphabet Inc., positioning itself as a disruptive force in the browser and AI search space.
- The bid comes amid regulatory scrutiny, with the US Department of Justice potentially mandating Alphabet to divest assets like Chrome.
- Perplexity, valued at $18 billion as of July 2025, aims to integrate Chrome with its AI-native ecosystem, leveraging its growing investor backing and market interest.
- Alphabet could face earnings and market share pressure if Chrome is sold, especially as competitors deploy more advanced AI capabilities in browsers.
- The acquisition, if successful, may catalyse broader changes in market structure, user privacy framework, and valuation benchmarks for AI firms.
In a bold move that underscores the intensifying competition in the artificial intelligence and web browsing sectors, Perplexity AI has tabled a $34.5 billion unsolicited bid to acquire Google Chrome from Alphabet Inc. This development highlights the growing ambitions of AI startups to challenge entrenched tech giants, potentially reshaping the landscape of online search and data access.
The Strategic Rationale Behind the Bid
Perplexity AI, valued at around $18 billion as of July 2025 according to reports from sources like Wikipedia, is positioning itself as a direct rival to Google’s dominance in search and browsing. The company’s recent launch of its own AI-powered browser, Comet, in July 2025, signals a clear intent to integrate advanced AI capabilities into everyday web navigation. By targeting Chrome, which commands a significant share of the global browser market, Perplexity aims to accelerate its growth and leverage Chrome’s vast user base to deploy its AI-driven search tools more broadly.
This bid comes amid ongoing antitrust scrutiny of Alphabet, with the US Department of Justice pushing remedies that could force the divestiture of assets like Chrome. As noted in various industry analyses, such as those from The Verge in April 2025, Perplexity has previously expressed interest in acquiring Chrome should it become available. The $34.5 billion offer, if accepted, would represent a premium on Chrome’s standalone value, estimated by analysts to be in the range of $20–30 billion based on its contribution to Alphabet’s ecosystem. This valuation reflects not just the browser’s market position but also its role in funnelling users towards Google’s search engine, which generates the bulk of Alphabet’s revenue.
Implications for Alphabet Inc.
Alphabet Inc., trading under the symbol GOOGL on NasdaqGS, saw its shares at $202.78 as of 12 August 2025, marking a 0.88% increase from the previous close of $201.00. The stock’s 52-week range stands at $140.53 to $207.05, with a year-to-date change reflecting robust performance amid broader market trends. However, the prospect of losing Chrome could disrupt Alphabet’s integrated business model, where the browser serves as a gateway to its advertising empire.
Analysts project that divesting Chrome might shave off a portion of Alphabet’s forward earnings, with consensus estimates from sources like Reuters indicating a forward P/E ratio of 22.63 based on expected EPS of 8.96. If forced to sell, Alphabet could face challenges in maintaining search dominance, especially as competitors like Perplexity integrate AI agents capable of performing tasks beyond simple queries—such as scheduling or payments, as highlighted in TechCrunch coverage of Comet’s features.
Perplexity’s Ambitions and Funding Backing
Founded in 2022, Perplexity has rapidly scaled, raising significant capital from investors including Nvidia, as reported by Reuters in July 2025. The startup’s valuation has surged from $1 billion in April 2024 (per PYMNTS.com) to $18 billion by mid-2025, fuelled by its AI search engine that promises more accurate, context-aware results than traditional models. The bid for Chrome aligns with Perplexity’s strategy to build an “AI-native” ecosystem, potentially keeping Google as the default search engine initially to ease the transition, as speculated in industry discussions.
However, Perplexity faces hurdles, including legal scrutiny over copyright issues from media outlets like The New York Times, as detailed in Wikipedia entries updated in July 2025. Despite these challenges, the company’s backing—evidenced by funding rounds exceeding $165 million by April 2024—positions it to pursue aggressive acquisitions. Analyst sentiment, rated at 1.5 (Buy) for Alphabet but increasingly positive for AI disruptors, suggests Perplexity could emerge as a formidable player if the deal materialises.
Market and Competitive Landscape
The broader AI browser war is heating up, with players like OpenAI also eyeing opportunities to challenge Google’s $300 billion search goldmine, according to reports from the Australian Financial Review in July 2025. Perplexity’s Comet browser, launched to rival Chrome, incorporates AI agents for proactive tasks, potentially eroding Google’s market share. Industry forecasts from models like those used by TechFundingNews in July 2025 indicate that AI-integrated browsers could capture 15–20% of the market by 2030, driven by user demand for seamless, intelligent web experiences.
For investors, this bid introduces volatility. Alphabet’s market cap of approximately $2.46 trillion as of 12 August 2025 dwarfs Perplexity’s resources, but a successful acquisition could validate higher multiples for AI firms. Sentiment from credible sources, such as CNN Business in June 2025, labels Perplexity as a startup catching attention from giants like Meta and Apple, underscoring bullish investor views on its potential.
Potential Outcomes and Risks
If the bid progresses, regulatory approval would be pivotal, given the antitrust context. The US DOJ’s remedies trial, ongoing since 2024, could mandate Chrome’s sale, but Perplexity’s offer might face competition from other suitors, including OpenAI, as mentioned in India Today reports from April 2025. A model-based forecast from analyst groups suggests a 40% probability of some form of divestiture for Alphabet within the next 12 months, potentially boosting Perplexity’s user base by 2–3 times overnight.
Risks abound: Perplexity’s $18 billion valuation implies it would need substantial debt or equity dilution to fund the $34.5 billion deal, which could strain its finances. For Alphabet, retaining Chrome is crucial for its 6.76 price-to-book ratio, supported by a book value of $29.98 per share. Yet, the bid might pressure Alphabet to innovate faster in AI, where it has lagged behind startups.
In summary, Perplexity’s audacious offer for Chrome encapsulates the disruptive force of AI in tech. It could either fortify Alphabet’s defences through rejection or herald a new era of fragmented browser ownership, with profound implications for search revenue and user privacy. Investors should monitor antitrust developments closely, as they could redefine competitive dynamics in this trillion-dollar arena.
References
- Australian Financial Review. (2025, July). OpenAI, Perplexity take aim at Chrome to raid $300B search goldmine. https://www.afr.com/technology/openai-perplexity-take-aim-at-chrome-to-raid-300b-search-goldmine-20250714-p5meou
- CNN Business. (2025, June 24). Perplexity AI search engine draws attention from Meta, Apple. https://www.cnn.com/2025/06/24/tech/perplexity-ai-search-engine-meta-apple
- EditorialGE. (2025). Perplexity buying Chrome in Google antitrust case. https://editorialge.com/perplexity-buying-chrome-google-antitrust-case
- India Today. (2025, April 24). After OpenAI, Aravind Srinivas-owned Perplexity wants to buy Google Chrome. https://www.indiatoday.in/technology/news/story/after-openai-aravind-srinivas-owned-perplexity-wants-to-buy-google-chrome-2713803-2025-04-24
- IndiaWest Journal News. (2025). Perplexity wants to buy Chrome if Google is forced to sell in antitrust case. https://indiawest.com/perplexity-wants-to-buy-chrome-if-google-forced-to-sell-in-antitrust-case/
- Nomusica. (2025). Could Perplexity take over Chrome? AI company ready to step in. https://nomusica.com/could-perplexity-take-over-chrome-ai-company-ready-to-step-in
- PYMNTS.com. (2024). Perplexity valued at $1 billion as it challenges Google Search. https://www.pymnts.com/news/investment-tracker/2024/perplexity-valued-at-1-billion-as-it-challenges-google-search/
- Reuters. (2025, July 9). Nvidia-backed Perplexity launches AI-powered browser to take on Google Chrome. https://www.reuters.com/business/media-telecom/nvidia-backed-perplexity-launches-ai-powered-browser-take-google-chrome-2025-07-09/
- TechCrunch. (2024, April 23). Perplexity is raising $250M at $2.5–3B valuation, AI search sources say. https://techcrunch.com/2024/04/23/perplexity-is-raising-250m-at-2-point-5-3b-valuation-ai-search-sources-say/
- TechCrunch. (2025, July 9). Perplexity launches Comet, an AI-powered web browser. https://techcrunch.com/2025/07/09/perplexity-launches-comet-an-ai-powered-web-browser/
- TechFundingNews. (2025, July). Apple considering $14B Perplexity acquisition. https://techfundingnews.com/apple-considering-14b-perplexity-acquisition/
- The Verge. (2025, April). Perplexity and the Google antitrust trial: remedies and Chrome. https://www.theverge.com/policy/654835/perplexity-google-antitrust-trial-remedies-chrome
- WebProNews. (2025). Perplexity wants to buy Chrome — and that’s terrifying for consumers. https://www.webpronews.com/perplexity-wants-to-buy-chrome-and-thats-terrifying-for-consumers/
- Wikipedia. (2025, July). Perplexity AI. https://en.wikipedia.org/wiki/Perplexity_AI
