Perplexity AI, an artificial intelligence startup, has made an unexpected $34.5 billion offer to buy Google’s (GOOGL) Chrome browser, CNBC confirmed on Tuesday. The bid is larger than Perplexity’s own current valuation, but the company says it has secured funding commitments from several investors to make the deal possible. Google has not responded to requests for comment, and The Wall Street Journal was the first to report the news.
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Perplexity is best known for its AI-powered search engine, which gives users quick, straightforward answers along with links to the original sources. Just last month, the company introduced its own AI-based web browser called Comet. By making a bid for Chrome, Perplexity appears to be aiming to dramatically grow its reach in the browser market and combine its AI features with one of the most popular browsers in the world.
The timing of the offer comes as Google faces increasing regulatory pressure. After losing an antitrust case last year, the U.S. Department of Justice recommended that Google sell Chrome, with the court ruling that the company had held an illegal monopoly in internet search. If regulators push for Chrome’s separation from Google, Perplexity’s bid could position it as a serious contender to take over the widely used browser.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 27 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $216.78 per share implies 6.2% upside potential.
