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AI Startup Perplexity Offers $34.5 Billion for Google Chrome

Perplexity AI, led by Aravind Srinivas, made an unsolicited all-cash bid of $34.5 billion to acquire Google’s Chrome browser, a price far above its own $14 billion valuation. The offer comes as web browsers regain importance in the AI search race, providing access to billions of users and valuable search data.

Perplexity, which already operates an AI-enabled browser called Comet, plans to maintain Chrome’s open-source Chromium code, invest $3 billion over two years, and preserve the default search engine, pledging no equity component in the deal. The startup has raised around $1 billion from investors including Nvidia and SoftBank and stated multiple funds are willing to finance the offer.

Google has not commented and has no plans to sell Chrome, with regulatory pressure and an ongoing antitrust case possibly leading to a prolonged legal battle. Analysts note the sale could take years to resolve, with appeals potentially reaching the Supreme Court. Perplexity’s move follows previous high-profile offers, such as its bid for TikTok US in January, and highlights the growing competition in AI-driven search and browsers.

Google Pledges $1 Billion for AI Training at U.S. Universities

Alphabet’s Google (GOOGL.O) announced a $1 billion, three-year commitment to support artificial intelligence training and tools at U.S. higher education institutions and nonprofits. Over 100 universities, including major public systems like Texas A&M and the University of North Carolina, have joined the initiative so far.

The program will provide participating schools with cash funding and resources such as cloud computing credits to facilitate AI training for students and research projects in AI-related fields. The $1 billion figure also includes the value of paid AI tools, including an advanced version of Google’s Gemini chatbot, offered free to college students.

Google aims to expand the program to every accredited nonprofit college across the U.S. and is exploring similar initiatives internationally, said Senior Vice President James Manyika. However, he did not disclose how much of the commitment represents direct funding versus cloud credits and software licenses.

This move follows similar efforts by AI competitors like OpenAI, Anthropic, Amazon, and Microsoft, the latter having pledged $4 billion to boost AI education globally. By introducing their AI tools to students early, tech companies hope to foster long-term adoption as these students join the workforce.

Despite some concerns around AI’s impact on education, including issues like academic dishonesty and critical thinking erosion, Manyika said Google has encountered little resistance from university administrators but expects ongoing discussions about best practices.

“We’re hoping to learn together with these institutions about how best to use these tools,” he said, emphasizing the initiative’s collaborative nature and potential to influence future AI product development.

Google Hires Key Windsurf Executives in $2.4 Billion Deal to Boost AI Coding Efforts

Alphabet’s Google has secured several leading staff members from AI code-generation startup Windsurf as part of a $2.4 billion licensing deal, the companies announced on Friday. The deal grants Google non-exclusive rights to use some of Windsurf’s technology but does not involve Google taking any ownership stake or controlling interest in the startup.

Windsurf CEO Varun Mohan, co-founder Douglas Chen, and members of the startup’s research and development team will join Google’s DeepMind AI division, focusing on advancing agentic coding projects, particularly the Gemini initiative. This move follows months of Windsurf’s discussions with OpenAI about a potential acquisition valued at around $3 billion.

Google praised the acquisition of top AI coding talent, positioning the deal as a strategic win to accelerate innovation in AI-assisted coding tools. Windsurf investors will gain liquidity through the licensing fees while maintaining their stakes in the company.

This deal is part of a growing trend of “acquihire” arrangements in the tech sector, where major companies hire startup teams without acquiring full ownership, often sidestepping regulatory scrutiny. Microsoft, Amazon, and Meta have all engaged in similar deals in recent years, sparking some antitrust investigations.

Windsurf will continue operating independently with most of its approximately 250 employees remaining, and Jeff Wang stepping in as interim CEO, with Graham Moreno appointed as president. The startup plans to prioritize product innovation for enterprise clients going forward.