Artificial-intelligence start-up Perplexity has made a pre-emptive bid to acquire Google’s Chrome browser ahead of a judge ruling later this month that is expected to force a sell-down after deeming that Google illegally monopolised the search market.
Within coming days the U.S. District Judge who heard the case is expected to issue a ruling with remedies to prevent the technology giant from monopolising the online search market, including licensing search data to competitors.
San Francisco-based Perplexity’s unsolicited US$34.5 billion bid to acquire Chrome follows previous interest in taking out the browser by rival artificial intelligence startup OpenAI.
Meanwhile Yahoo and Apollo Global Management have also reportedly expressed interest in buying Chrome ,which is expected to have an enterprise value have ranging from US$20 billion to US$50 billion.
In an attempt to avoid any antitrust concerns, Perplexity’s offer to Google does not have an equity component.
Perplexity said its offer to buy Chrome is “designed to satisfy an antitrust remedy in highest public interest by placing Chrome with a capable, independent operator.”
Following a US$100 million in capital raising earlier this year - which valued Perplexity at US$18 billion - the new start-up has attempted to woo users from Google by offering search powered by AI.
Perplexity Chief Business Officer Dmitry Shevelenko recently told media that multiple large investment funds had agreed to finance the transaction in full.
Assuming the bid is accepted and a deal is approved Perplexity is expected to invest US$3 billion over the next two years in Chrome and Chromium and “extend offers to a substantial portion of Chrome talent”.
The company added that it would not make any “stealth modifications” to Chrome.
“This is part of our commitment to continuity and choice for users and will likely be seen as having the benefit of stability for Google and its many advertisers,” Perplexity said.
In a letter Perplexity sent to Google parent Alphabet CEO Sundar Pichai, the start-up said it would maintain and support Chromium, the open-source project that supports Chrome and other browsers.
It will also continue placing Google as the default search engine within Chrome, however, users could change settings.
This is not the first time Perplexity has made an offer for a major internet property ahead of a forced transition.
Earlier this year, the company also submitted a bid to buy TikTok, which without a deal is facing a U.S. ban.
What appears to be attracting AI companies to web browsers is renewed interest in building agents that can complete online shopping and other tasks for users.
Perplexity is preparing to release a browser called Comet featuring an AI agent.
Meanwhile, Google is by no means taking the pending court ruling on a forced Chrome browser divestment lying down.
Goggle plans to appeal the ruling, with Pichai testifying that forcing a sale or requiring it to share data with rivals would harm its business, deter investment in new technology and create security risks.
