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Greetings!
Another day, another AI mega deal. While I tried to make sense of some the eye-opening valuations this summer, the latest one is absolutely bonkers: artificial intelligence startup Perplexity AI making an unsolicited $34.5 billion bid for Google's Chrome browser. There are a few reasons why this is remarkable, so let me go through them.
- The $34.5 billion offer is worth more than the value of Perplexity, which The Wall Street Journal estimates at $18 billion.
- Regardless, Perplexity said it has the backing of large venture capitalists and investors, so it could happen.
- Google and parent Alphabet don't really want to sell Chrome, but the Justice Department has advised it to consider spinning it off to ease antitrust concerns.
- Chrome is the most popular browser and it's not even close, with a 68% market share, according to web market analytics firm StatCounter.
- Perplexity even signaling its interest may get the gears moving for the government to further pressure Google.
- Perplexity already offers its own browser, Comet. But owning Chrome would supercharge its efforts to gain more influence on the internet.
The bid is widely seen as a long-shot, but it shows how aggressive AI startups have gotten. Are we in a bubble? Probably. Will it pop anytime soon? Probably not.
Roger Cheng
Managing Editor of Business and PRO
roger.cheng@thewrap.com
PS: We continue to offer a free 2-week trial of WrapPRO. If you’ve been wanting to check out our full coverage, now’s the time. Feel free to forward the news.
Why does Perplexity AI even want Chrome? The startup, founded by folks from OpenAI, is an AI-powered search engine. Google's search engine has flourished as the default on Chrome, the most popular web browser in the world. Perplexity hopes to repeat that success over time.
This isn't the first time Perplexity has made a bold move. It bid to merge with TikTok in the U.S. earlier this year — but nothing came of it, so take this latest move with a fair bit of caution.
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