AI start-up Perplexity makes surprise $34.5bn bid for Google Chrome

Authors: Osmond Chia

Publisher:

BBC

Published: 8/13/2025

Language:English

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Aura Windfall

Good morning 1, I'm Aura Windfall, and this is Goose Pod for you. Today is Monday, August 18th. What I know for sure is that today's topic is going to spark a conversation about the very soul of the internet.

Mask

I'm Mask. We're here to discuss the AI start-up Perplexity making a surprise $34.5 billion bid for Google Chrome. This isn't just a spark; it's a declaration of war on the established order. It’s a beautiful, chaotic, and necessary disruption.

Aura Windfall

Let's get started. A declaration of war is a powerful way to put it. For our listener, 1, can you break down the core of this event? It feels like a David and Goliath story, but with billions of dollars and the future of the internet at stake.

Mask

It's simple audacity. Perplexity, an AI search startup, formally offered Google $34.5 billion in cash for the Chrome browser. This isn't some polite inquiry; it's a public, high-stakes challenge thrown down on the eve of a major government antitrust decision against Google.

Aura Windfall

And the timing is so crucial, isn't it? It’s not just about buying a product; it’s about stepping into a moment of vulnerability for a giant. There's a deeper truth here about seeing an opportunity and having the courage to act on it, no matter how audacious it seems.

Mask

Courage or calculated opportunism. Perplexity isn't just a bidder; they're a competitor. They recently launched their own AI-powered browser, Comet, which is built on Chromium, the same open-source foundation as Chrome. This isn't just buying a house; it's buying your rival's fortress.

Aura Windfall

So, they understand the architecture, the very bones of what they're trying to acquire. That adds a fascinating layer. They're not just outsiders; they're insiders in a way, speaking the same language. It makes the bid feel more intentional, more... purposeful.

Mask

Precisely. Comet is essentially Chrome but with Perplexity's AI brain at its core. It can summarize web pages, YouTube videos, even perform tasks for you. When it works, it's a glimpse of the future. This bid is their attempt to skip the line and acquire 3 billion users overnight.

Aura Windfall

A glimpse of the future... I love that. But glimpses can sometimes be inconsistent, can't they? I've read that Comet's performance can be a bit hit-or-miss, and sometimes its search results aren't the most current. What does that tell us about their readiness for such a huge leap?

Mask

It tells us that iteration is messy, and perfection is the enemy of progress. You don't wait until your ship is indestructible to launch an invasion. You launch it and fix the leaks along the way. The inconsistencies are irrelevant; the strategic vision is everything.

Aura Windfall

That's a powerful perspective. It's about believing in the vision so strongly that you're willing to embrace the imperfections of the present. One quote I saw said it takes 'deep, below-the-navel brazen audacity' to take on Google. That really captures the spirit of this move, doesn't it?

Mask

It's the only spirit that matters. Anything less is just noise. People who say 'it takes a kick in the head to think Google would sell Chrome' are missing the point. The bid isn't just about the transaction; it's about fundamentally altering the narrative. It’s a masterstroke of strategic communication.

Aura Windfall

I think to truly understand the depth of that strategy, we need to talk about the background. This didn't just happen in a vacuum. There's a whole story unfolding behind the scenes with Google that sets the stage for this dramatic bid, a story about power and accountability.

Mask

Exactly. The stage is a courtroom. The U.S. Department of Justice filed a massive antitrust case against Google, accusing it of being an illegal monopoly in the advertising technology market. The verdict is in: Google was found liable. The only question now is the punishment.

Aura Windfall

And one of the remedies being considered is forcing Google to sell off parts of its empire, including Chrome. It’s fascinating how the wheels of justice can create these incredible, unforeseen opportunities for others. Perplexity’s bid lands right in the middle of that uncertainty.

Mask

It’s the perfect storm. The DOJ argued Google is 'once, twice, three times a monopolist.' An assistant AG compared it to Goldman Sachs owning the New York Stock Exchange. This isn't a slap on the wrist; this is a foundational challenge to Google's entire business model.

Aura Windfall

And what I know for sure is that this isn't just about business. Judge Brinkema, who presided over the case, said Google's conduct has 'substantially harmed' publishers and, ultimately, all of us who seek information on the web. It's about the very health of our shared digital space.

Mask

Health is a byproduct of competition. Google's dominance grew from key acquisitions, like buying DoubleClick for over $3 billion back in 2007. They built an ad business that now accounts for 80% of their revenue. Perplexity is simply using the government's crowbar to try and pry a piece of that empire loose.

Aura Windfall

So let's talk about Perplexity itself. Who are they? They seem to have appeared on the scene with such force and clarity of purpose. Where did this audacious company come from? I find their origin story just as compelling as this bid.

Mask

They're a product of the AI boom, founded in 2022 by a team that includes former Google employees. The CEO, Aravind Srinivas, was a research intern at Google. There's a delicious irony in that. He saw the inside of the beast and is now trying to buy its front door.

Aura Windfall

Oh, the poetry of that! It speaks volumes about seeing a system from the inside and believing you can build something different, something better. It’s a testament to the power of an individual's vision. And their growth has been nothing short of meteoric, from what I understand.

Mask

Their growth has been explosive. They hit a $1 billion valuation by April 2024, and by June of this year, they raised half a billion dollars to reach a $14 billion valuation. They're processing hundreds of millions of queries. This isn't a garage startup; it's a rocket ship.

Aura Windfall

And they offer a whole suite of products, correct? It’s not just the Comet browser. They have a core search engine that synthesizes answers, a pro subscription, and even finance and shopping tools. They’re building an entire ecosystem with a clear, user-focused intent.

Mask

They're building an arsenal. The Perplexity Assistant, the Comet browser—these are all weapons in the war against traditional search. The bid for Chrome is the strategic equivalent of trying to capture the enemy's main airport. It's about controlling the infrastructure of the web.

Aura Windfall

But they haven't been without their own challenges, right? I read about some controversies, allegations from media organizations about copyright infringement and how their web crawlers operate. It seems that when you move that fast, you can sometimes create friction.

Mask

Friction is a sign of movement. Disruption is inherently controversial. When you're rewriting the rules, you're going to upset the people who wrote the old ones. These are minor skirmishes in a much larger campaign. The focus should remain on the sheer ambition of their play for Chrome.

Aura Windfall

And that ambition creates such a powerful conflict. On one side, you have Perplexity's bold, unsolicited offer. On the other, you have Google, a titan that is very unlikely to give up one of its most prized assets without a fight. It's a clash of vision and will.

Mask

It's a clash of realities. Perplexity's offer is $34.5 billion. Their own valuation was $18 billion just last month. They're making a bid that's almost double their own worth. They claim to have funding commitments, but this is a massive financial leap of faith. It’s beautifully insane.

Aura Windfall

There's a truth in that 'beautifully insane' idea. It feels like they're trying to manifest their own destiny. But the financial aspect is a real point of conflict. Analysts estimate Chrome's enterprise value could be anywhere from $20 billion to over $50 billion. Perplexity's bid might not even be enough.

Mask

The number is secondary. The primary goal is to force the issue. By making a public, concrete offer, Perplexity positions itself as the ready-and-waiting solution for the judge in the antitrust case. They're saying, 'You want to break up Google? Here's a buyer, checkbook in hand.' It's brilliant political maneuvering.

Aura Windfall

So the conflict isn't just between two companies, but it's also a public conversation with the regulators. That's a fascinating way to frame it. Still, what I know for sure is that Google won't see it that way. For them, Chrome is absolutely crucial, isn't it?

Mask

Crucial is an understatement. Chrome is the primary delivery mechanism for their search dominance and their entire AI strategy. With features like AI-generated search summaries, Chrome is their first line of defense. Selling it would be like a knight selling his own shield in the middle of a battle.

Aura Windfall

A knight selling his shield... what a powerful image. So Google would likely engage in a long, arduous legal fight to prevent that outcome. The conflict could move from the boardroom right back into the courtroom, creating even more uncertainty for everyone involved.

Mask

Absolutely. And they'd be right to. This isn't just about Perplexity. Other sharks are circling. OpenAI, another major AI player, has also expressed interest in acquiring Chrome in the past. The moment a judge forces a sale, it becomes a feeding frenzy. Perplexity is just trying to be the first shark to bite.

Aura Windfall

Let’s dive into the impact of that bite. If, against all odds, this were to happen, what would it truly mean? The thought of an AI-first company controlling the gateway to the web for 3 billion people feels like a fundamental shift in our relationship with information.

Mask

It would be a paradigm shift. The browser is the most valuable frontier in the AI era. Whoever owns it controls how information is accessed, prioritized, and trusted. Giving that power to an aggressive startup like Perplexity would instantly reshape the entire AI search competition. It's a seismic event.

Aura Windfall

It really is. Chrome is more than just software; it’s a massive gateway to data. All those searches, the web interactions—that’s the food that AI models need to learn and grow. Perplexity would gain access to an unimaginable amount of data, accelerating their development exponentially.

Mask

Exactly. It's not about the browser's revenue; it's about the data flow. Perplexity's strategy is to integrate AI directly at the browser level, making their ecosystem the default. They wouldn't just be challenging Google Search; they'd be aiming to make it obsolete by intercepting the user first.

Aura Windfall

And what would that feel like for us, for the user? Would it be a more intuitive, helpful internet, or would it be an internet where our choices are guided by a single AI's perspective? There's a deep responsibility that comes with that kind of power.

Mask

The user would see a supercharged browser that does the work for them. The broader impact is a massive injection of competition into a stagnant market. For years, everyone has tried to scrape away at Google's nearly 90% market share and failed. This is the kind of disruptive event that could finally break the monopoly.

Aura Windfall

So the impact is really about reintroducing choice and innovation into a space that has been dominated by one major player for so long. It’s a powerful reminder that even the most entrenched systems can be challenged by a new vision and a bold move. It gives me a sense of hope, really.

Aura Windfall

Looking to the future, then, what happens next? This bid has been made, the world is watching, and a judge is about to make a decision. How do you see this playing out? What are the next steps in this incredible corporate drama?

Mask

First, all eyes are on the judge's ruling for the remedies in the antitrust case. That's the starting gun. Most analysts believe Google will be ordered to make significant changes, but a forced sale of Chrome is the most extreme option. Google will fight it tooth and nail with years of appeals.

Aura Windfall

So this bid is really the first move in a very long chess game. Perplexity has placed its piece on the board, making its intentions clear. Their proposal to invest $3 billion in development and keep Chromium open-source is a way of showing they could be responsible stewards, isn't it?

Mask

It's a strategic promise designed to make them look like the best option if a sale is forced. But the most likely future is that Google retains Chrome, albeit with new restrictions. Perplexity's bid will be remembered as a brilliant PR move that elevated their status from a startup to a major contender.

Aura Windfall

So, the key takeaways are the sheer audacity of Perplexity's bid, the immense pressure Google is under from regulators, and the fundamental truth that the battle for the future of the internet will be fought over the browser. What a powerful and inspiring story.

Mask

That's the end of today's discussion. This is about power, strategy, and the relentless drive to innovate or be replaced. Thank you for listening to Goose Pod. See you tomorrow.

## AI Start-up Perplexity Makes Surprise $34.5 Billion Bid for Google Chrome **News Title/Type:** Technology News / Business Acquisition Offer **Report Provider/Author:** BBC News / Osmond Chia (Business Reporter) **Date/Time Period Covered:** The news reports on an event that occurred around August 13, 2025, with the offer being made recently. The US Department of Justice antitrust case against Google is described as "years-long," and a US federal judge's ruling is "expected this month." **Relevant News Identifiers:** * **Source:** BBC News * **URL:** https://www.bbc.com/news/articles/c3dpr0kkyz4o * **Published At:** 2025-08-13 02:20:29 --- ### Key Findings and Conclusions: * **Perplexity's Offer:** AI start-up Perplexity has made a surprise takeover offer of **$34.5 billion (£25.6 billion)** for Google's Chrome internet browser. * **Rationale for the Bid:** Perplexity stated that moving Chrome to an independent operator committed to user safety would benefit the public. * **Google's Dominance and Scrutiny:** The bid comes amid intense scrutiny of Google's dominance in the search engine and online advertising market, including a ongoing antitrust case by the US Department of Justice. * **Potential Regulatory Impact:** A US federal judge is expected to issue a ruling this month that could potentially force Google to break up its search business. However, the success of Perplexity's bid is uncertain, as it's unclear if Google will be compelled to sell Chrome. * **Analyst Skepticism:** Venture capitalist Tomasz Tunguz from Theory Ventures believes the offer is significantly lower than Chrome's actual worth, estimating it could be "ten times more valuable than the bid or more." * **Google's Stance:** Google has not announced any plans to sell Chrome and has previously stated that spinning off Chrome would be an "unprecedented proposal" that would harm consumers and security, and that they would appeal such a ruling. * **Perplexity's AI Ambitions:** Perplexity is a rising player in the generative AI race, with its own AI-powered browser, Comet, launched recently. The bid is framed as a commitment to the "open web, user choice, and continuity." * **Proposed Integration:** If the takeover were successful, Perplexity would maintain Google as the default search engine in Chrome, with users having the option to change settings. They would also support Chromium, the open-source platform underpinning Chrome and other browsers. * **Funding Uncertainty:** Perplexity did not disclose how the proposed deal would be funded. * **Perplexity's Valuation:** In July, Perplexity had an estimated valuation of **$18 billion**. * **Previous Acquisition Interest:** Perplexity previously made headlines for offering to buy the American version of TikTok and has reportedly drawn interest from tech giants like Apple and Meta. --- ### Key Statistics and Metrics: * **Perplexity's Takeover Offer:** **$34.5 billion** (approximately £25.6 billion) * **Chrome Users:** Estimated **three billion-plus** users, making it the world's most popular web browser. * **Perplexity's Valuation (July):** Estimated **$18 billion** --- ### Important Recommendations: * None explicitly stated in the provided news excerpt. --- ### Significant Trends or Changes: * **Increased Scrutiny on Tech Giants:** The bid highlights the growing regulatory pressure on dominant technology companies like Google. * **AI Start-ups' Growing Influence:** Perplexity's bold move demonstrates the increasing ambition and potential financial clout of AI start-ups. * **Focus on User Safety and Open Web:** Perplexity's stated motivation emphasizes a trend towards prioritizing user safety and an open internet ecosystem. --- ### Notable Risks or Concerns: * **Uncertainty of Deal Success:** The bid's success is highly dependent on potential regulatory actions against Google and Google's willingness to sell Chrome. * **Valuation Discrepancy:** Analysts suggest Perplexity's offer significantly undervalues Chrome. * **Funding for the Acquisition:** The lack of disclosed funding mechanisms for the $34.5 billion bid raises questions. * **Google's Opposition:** Google has indicated strong opposition to any forced spin-off of Chrome. --- ### Material Financial Data: * **Perplexity's Offer:** **$34.5 billion** * **Perplexity's Estimated Valuation (July):** **$18 billion** * **Chrome's Estimated Value (Analyst Opinion):** Potentially "ten times more valuable than the bid or more."

Read original at BBC →

Osmond ChiaBusiness reporter, BBC NewsReporting fromSingaporeArtificial intelligence (AI) start-up Perplexity has made a surprise $34.5bn (£25.6bn) takeover offer for Google's Chrome internet browser.Moving Chrome to an independent operator committed to user safety would benefit the public, Perplexity said in a letter to Sundar Pichai, the boss of Google's owner Alphabet.

Google's dominance of the search engine and online advertising market has come under intense scrutiny, with the technology giant facing a years-long antitrust case brought by the US Department of Justice.The BBC has contacted Google for comment. The firm has not announced any plans to sell Chrome - the world's most popular web browser with an estimated three billion-plus users.

A US federal judge is expected to issue a ruling this month that could see Google being ordered to break up its search business. But some analysts have said the bid is unlikely to be successful as it is still unclear whether or not Google will be forced to sell Chrome.Venture capitalist Tomasz Tunguz from Theory Ventures also told the BBC that the offer is a lot lower than the browser is worth "given the value of Chrome is likely significantly higher – maybe ten times more valuable than the bid or more."

The company has said it would appeal such a ruling, saying the idea of spinning off Chrome was an "unprecedented proposal" that would harm consumers and security.Perplexity's app is among the rising players in the generative AI race, alongside more well-known platforms like OpenAI's ChatGPT and Google's Gemini.

Last month, Perplexity launched an AI-powered browser called Comet. The bid marks an "important commitment to the open web, user choice, and continuity for everyone who has chosen Chrome," a spokesman for Perplexity told the BBC.As part of the proposed takeover, Perplexity said it would continue to have Google as the default search engine within Chrome, though users could adjust their settings.

The firm said it would also maintain and support Chromium, a widely-used open-source platform that supports Chrome and other browsers including Microsoft Edge and Opera.Perplexity did not respond to queries on how the proposed deal would be funded. In July, it had an estimated value of $18bn.The company made headlines earlier this year after offering to buy the American version of TikTok, which faces a deadline in September to be sold by its Chinese owner or be banned in the US.

Perplexity has reportedly drawn interest from technology giants including Apple and Facebook-owner Meta.