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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.

EU Antitrust Complaint Filed Against Google Over AI Overviews by Independent Publishers

A coalition of independent publishers has lodged an antitrust complaint with the European Commission, accusing Alphabet’s Google of abusing its dominance in online search through its AI-generated “AI Overviews” feature, which summarizes web content atop search results.


Summary:

  • The Complaint:
    The Independent Publishers Alliance, along with groups like the Movement for an Open Web and Foxglove Legal Community Interest Company, claim Google’s AI Overviews harm publishers by reducing traffic, readership, and revenue. These AI summaries appear above traditional search links in over 100 countries and started displaying ads last May.

  • Allegations:

    • Google is accused of misusing publishers’ original content without consent by feeding it into AI models that generate these summaries.

    • Google’s placement of AI Overviews at the top of search results allegedly disadvantages original publisher content, lowering their visibility.

    • Publishers cannot opt out of having their content used for AI training or summaries without also losing presence in Google Search results.

  • Legal Action and Requests:
    The publishers have asked the European Commission for an interim measure to prevent what they describe as “irreparable harm” to their businesses and competition in the news sector. Similar complaints have also been filed with the UK Competition and Markets Authority.

  • Google’s Response:
    Google argues it drives billions of clicks to websites daily and that new AI features in Search offer more discovery opportunities for content providers. It also disputes claims about traffic loss, attributing fluctuations to other factors like seasonal trends and search algorithm updates.

  • Broader Context:
    This EU complaint echoes a recent U.S. lawsuit by an educational technology company alleging that AI Overviews decrease demand for original content, causing drops in visitors and subscriptions.

  • Significance:
    The case raises important questions about the balance between AI innovation in search and the sustainability of independent journalism and publisher rights in the digital economy.