Perplexity AI’s $34.5b Chrome bid: Strategy or stunt?

The artificial intelligence company Perplexity’s audacious offer to acquire Chrome has sent shockwaves through Silicon Valley, but questions remain about whether the move represents a genuine strategy or a calculated publicity stunt.

Perplexity AI made an unsolicited $34.5 billion bid for Google’s Chrome browser last Tuesday, a figure that exceeds the startup’s own $18 billion valuation by nearly a factor of two. The timing appears strategically calculated, coming as federal courts consider whether to force Google to divest itself of Chrome, following last year’s landmark antitrust ruling.

The financial mechanics of the proposed Perplexity Chrome acquisition raise immediate red flags. Perplexity has raised about $1.5 billion to date, including an extension round of $100 million raised last month, when the company was valued at $18 billion. To bridge the gap, the company said several investors have agreed to back the deal, though specific funding details were undisclosed.

Industry experts are divided on the bid’s valuation. Wedbush tech analyst Dan Ives told CNN that he estimates Chrome is worth at least $50 billion, while DuckDuckGo’s CEO, Gabriel Weinberg, suggested Chrome may command upwards of $50 billion if Google were forced to sell. Those estimates would make Perplexity’s offer well below market value.

Strategic logic or marketing manoeuvre?

The bid’s strategic rationale centres on browser control as the next battleground in AI search. Perplexity unveiledits AI-native search browser, Comet, last month, an explicit move to take enter the browser market. Acquiring Chrome would provide instant access to over three billion users – a massive leap from Perplexity’s current 30 million monthly active users for its AI service.

However, scepticism abounds. Technology industry investor Heath Ahrens called Perplexity’s move a “stunt, and nowhere near Chrome’s true value, given its unmatched data and reach.” That sentiment reflects broader industry doubts about both the bid’s sincerity and financial viability.

Terms that seem too good to be true

The proposed Perplexity Chrome acquisition includes seemingly altruistic terms that raise questions about commercial intent. Perplexity said it would maintain users’ current browsing preferences, including Google as the default search engine, and commit to keep Chrome’s underlying engine, Chromium, open-source and continue to invest in it with a promised $3 billion investment over 24 months.

The terms appear to contradict typical acquisition logic, where buyers seek competitive advantages rather than maintaining competitors’ market positions. The promise to keep Google as the default search engine particularly puzzles analysts, given Perplexity’s core business as a Google Search challenger. An observer with any sense of history or experience would surmise that Perplexity’s assurances are ephemeral, and that in practice, Chrome would see massive changes under the hood in terms of its provision of services.

Regulatory backdrop and timing

The bid’s timing coincides perfectly with ongoing antitrust proceedings, with Google yet to respond publicly on the offer. The company has not offered Chrome for sale and plans to appeal a US court ruling last year that found it held an unlawful monopoly in online search.

The unsolicited bid comes not long after rival OpenAI also expressed interest in acquiring Chrome, suggesting multiple AI companies view browser control as strategically important.

The bid also marks Perplexity’s second major acquisition attempt this year. It made similar moves for TikTok US in January, offering to merge with the popular short-video app to resolve US concerns about TikTok’s Chinese ownership. The TikTok bid generated similar headlines but failed to materialise into a completed transaction.

Market reaction and industry implications

Despite the astronomical figures involved, market reaction has been measured. On Wall Street, Alphabet’s share price surged up 1.4% since the market opened, suggesting investors view the bid sceptically rather than as a genuine threat to Google’s browser dominance.

The broader implications extend beyond this single transaction. Perplexity believes browsers are strategic control points for the next era of agentic search and online advertising, highlighting how AI companies increasingly view traditional tech infrastructure as essential battlegrounds.

The verdict: Strategy or spectacle?

Google is unlikely to sell Chrome, so it’s more of a PR stunt than a likely deal, according to industry analysis. The Perplexity Chrome acquisition bid serves several purposes beyond its stated intent: generating massive media coverage, positioning Perplexity as a serious Google competitor, and demonstrating financial backing for future endeavours.

Whether genuine or theatrical, the bid illuminates the evolving dynamics of AI competition, where control of user access points may determine which companies succeed in the next phase of digital transformation. For now, Perplexity has achieved its likely primary objective – commanding attention in an increasingly crowded AI marketplace.

(Photo by Perplexity/X.com)

See also: Telefónica’s Wayra backs AI answer engine Perplexity