Perplexity AI offered Google on Tuesday $34.5 billion for its popular Chrome web browser, which the internet giant could potentially be forced to sell as part of antitrust proceedings.
Artificial intelligence start-up Perplexity has tabled a $34.5 billion (£25.6 billion) cash bid for Google's Chrome browser, saying independent ownership would improve user safety and uphold the “open web”. In a letter to Alphabet Inc (NASDAQ:GOOG) chief executive Sundar Pichai, the firm pledged to keep Google as Chrome's default search engine while continuing support for Chromium, the open-source technology behind Chrome and other browsers.
The AI startup has reportedly put in a $34.5 billion bid to buy Chrome as a key antitrust ruling looms. But analysts say the price looks low and Google is unlikely to be selling.
AI company Perplexity has made a $34.5 billion offer for Google's Chrome browser, according to multiple outlets, making the bid as a judge considers forcing Google to spin off Chrome after it was ruled to have held a monopoly over online advertising technology.
The tiny start-up hopes to take advantage of an upcoming antitrust ruling against the tech giant.
AI startup Perplexity has offered to buy Google's Chrome browser for $34.5 billion. The company said venture investors have proposed funding the deal.
Perplexity AI said it has made a $34.5 billion unsolicited all-cash offer for Alphabet's Chrome browser, a low but bold bid that would need financing well above the startup's own valuation.
The stock lagged its Magnificent Seven peers early in the year, weighed down by regulatory fears and concerns that its dominance in search and advertising was wavering.
Alphabet Inc (NASDAQ:GOOGL) stock has been steadily climbing since its early-April lows, recently getting a boost from an upbeat second-quarter earnings report.
Alphabet's strong Q2 results, robust AI initiatives, and continued search dominance support significant upside and shareholder value creation. AI product launches and rapid cloud business growth position Alphabet to benefit from digital ad and cloud market expansion, despite rising competition. My updated DCF model indicates Alphabet's fair value is $210.94 per share, about 7% above current levels, with consensus targets even higher.
To anyone still shouting “bubble”: Please sit down.
Alphabet's search business remains resilient, showing strong growth despite generative AI competition, while cloud and Waymo provide additional momentum. Cloud revenue accelerated 32% YoY, and I see long-term margin expansion potential as this segment matures, supporting overall profitability. The company's robust balance sheet and aggressive capital allocation, including buybacks, offer downside support and flexibility for future investments.