Perplexity AI offers Google US$34.5 billion for Chrome browser
The whopping sum proposed in a letter of intent by Perplexity is nearly double the value of the startup, which was reportedly US$18 billion in a recent funding round.
'This proposal is designed to satisfy an antitrust remedy in highest public interest by placing Chrome with a capable, independent operator focused on continuity, openness, and consumer protection,' Perplexity chief executive Aravind Srinivas said in the letter, a copy of which was seen by AFP.
Google is awaiting US District Court Judge Amit Mehta's ruling on what 'remedies' to impose, following a landmark decision last year that said the tech titan maintained an illegal monopoly in online search.
US government attorneys have called for Google to divest itself of the Chrome browser, contending that artificial intelligence is poised to ramp up the tech giant's dominance as the go-to window into the internet.
Google has urged Mehta to reject the divestment, and his decision is expected by the end of the month.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Google did not immediately respond to a request for comment.
Perplexity's offer vastly undervalues Chrome and 'should not be taken seriously,' Baird Equity Research analysts said in a note to investors.
Given that Perplexity already has a browser that competes with Chrome, the San Francisco-based startup could be trying to spark others to bid or 'influence the pending decision' in the antitrust case, Baird analysts theorised.
'Either way, we believe Perplexity would view an independent Chrome - or one no longer affiliated with Google - as an advantage as it attempts to take browser share,' Baird analysts told investors.
Google contends that the United States has gone way beyond the scope of the suit by recommending a spinoff of Chrome, and holding open the option to force a sale of its Android mobile operating system.
'Forcing the sale of Chrome or banning default agreements wouldn't foster competition,' said Cato Institute senior fellow in technology policy Jennifer Huddleston.
'It would hobble innovation, hurt smaller players, and leave users with worse products.'
Google attorney John Schmidtlein noted in court that more than 80 per cent of Chrome users are outside the United States, meaning divestiture would have global ramifications.
'Any divested Chrome would be a shadow of the current Chrome,' he contended.
'And once we are in that world, I don't see how you can say anybody is better off.'
The potential of Chrome being weakened or spun off comes as rivals such as Microsoft, ChatGPT and Perplexity put generative artificial intelligence (AI) to work fetching information from the internet in response to user queries.
Google is among the tech companies investing heavily to be a leader in AI, and is weaving the technology into search and other online offerings. AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
25 minutes ago
- Straits Times
Bitcoin hits fresh record above US$124,000 as Fed easing bets add to tailwinds
Sign up now: Get ST's newsletters delivered to your inbox Bitcoin has risen nearly 32 per cent so far in 2025 on the back of regulatory wins for crypto following President Donald Trump's return to the White House. TOKYO - Bitcoin hit a record high on Aug 14 as increasing expectations for easier monetary policy from the Federal Reserve added to tailwinds from recently announced financial reforms. The world's largest crypto-asset by market value climbed as much as 0.9 per cent to US$124,002.49 in early Asia trading, surpassing its previous peak hit in July. Ether, the second largest crypto token, hit US$4,780.04, its highest level since late 2021. Bitcoin's rally is being powered by increasing certainty of Fed rate cuts, sustained institutional buying and moves by the Trump administration to ease investment in crypto assets, said IG market analyst Tony Sycamore. 'Technically a sustained break above US$125k could propel BTC to US$150,000,' he wrote in a note. Bitcoin has risen nearly 32 per cent so far in 2025 on the back of long-sought regulatory wins for the sector following President Donald Trump's return to the White House. Mr Trump has called himself the 'crypto president' and his family has made a series of forays into the sector over the past year. An executive order last week paved the way to allow crypto assets in 401(k) retirement accounts, highlighting an increasingly favorable regulatory environment in the United States. Crypto has scored multiple regulatory wins in the US over 2025, including the passage of stablecoin regulations and the US securities regulator's move to overhaul regulations in order to accommodate the asset class. Top stories Swipe. Select. Stay informed. Asia India, Singapore ministers discuss deeper tie-ups in digitalisation, skills, industrial parks Business More seniors remain employed after retirement and re-employment ages raised in 2022: MOM study Singapore To Vers or not to Vers: How will this scheme affect HDB prices? Asia Malaysia's ex-economy minister says his son was jabbed with syringe in planned attack Singapore askST: Will assets seized in $3b money laundering case be sold at public auctions? Singapore Woman, 68, charged over assaulting maid with scissors and nail clipper Business StarHub first-half profit falls 41.7% to $47.9m; telco eyes 'more aggressive stance' amid competition Singapore From quiet introvert to self-confident student: How this vulnerable, shy teen gets help to develop and discover her strength Bitcoin's surge has also sparked a broader rally in the asset class over the past few months, shrugging off the tremors of Mr Trump's wide-ranging tariff policies. According to data from CoinMarketCap, the crypto sector's overall market capitalisation has ballooned to over US$4.18 trillion (S$5.35 trillion), up from about US$2.5 trillion in November 2024, when Mr Trump won the US presidential election. The latest push for crypto adoption in the US came via an executive order on Thursday last week, which would ease access to the asset class in 401(k) retirement accounts. The executive order could also be a boost for asset managers such as BlackRock and Fidelity, which operate crypto exchange-traded funds (ETFs). Crypto's push into retirement savings can also be peppered with risks, as the asset class tends to experience much more volatility than stocks and bonds, which asset managers had typically relied on for such accounts. REUTERS
Business Times
25 minutes ago
- Business Times
Evergrande liquidators target founder's assets in pivotal stage
[HONG KONG] More than a year after China Evergrande Group's liquidators began pursing the wealth of seven key defendants, the high-profile case is now entering a critical phase. So far Hui Ka Yan, the founder of Guangzhou-based Evergrande, has refused to disclose his assets, escalating tensions between him and creditors. That's adding to the challenges for liquidators who are preparing to hone in on the billionaire during a hearing scheduled on Sep 2. Liquidators are sifting through files and looking at some 3,000 entities related to Evergrande, just as the firm announced plans to delist in August. At the heart of the matter is US$6 billion worth of assets in the form of mostly dividends and remuneration that were paid to people, including Hui and other defendants. The property mogul was known for his lavish lifestyle and exemplified the country's real estate boom and bust. The court's decision could influence how other wealthy founders and executives behind troubled Chinese developers disclose their assets. The country's developers have defaulted on about US$150 billion of debt since the property crisis began, according to data compiled by Bloomberg. So far, much of the trial has focused on Hui's ex-wife Ding Yumei and former chief executive officer Xia Haijun. Both managed to delay, but not avoid, disclosure of their assets, despite hiring some of the most expensive lawyers in town. If liquidators manage to convince the high court to have Hui reveal his holdings, it could help them locate wealth that amounts to about an eighth of the firm's preliminary estimated US$45 billion debt load. It would also be a victory for creditors who have yet to pocket a penny nearly 19 months after Evergrande was wound up. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Hui's network Clarity on Evergrande's assets tied to Hui is crucial for liquidation, as filings show he controls nearly 60 per cent of the company. Hui has pocketed more than US$7 billion over the past decade thanks to the firm's generous payouts, according to data compiled by Bloomberg. Getting Hui to detail his wealth is just the first step in a long process of recuperating funds. The liquidators also have to contend with complexities onshore. It's been challenging for offshore investors to get their hands on assets that sit in the mainland, which has a separate jurisdiction from Hong Kong. Last year, a mainland court accepted a liquidation application filed against one of Evergrande's major onshore units, Guangzhou Kailong Real Estate. Kailong is fully owned by Evergrande and has a stake of around 60 per cent in Hengda Real Estate, the developer's main property operation onshore. Last March, Chinese regulators accused Hengda Real Estate of inflating more than 560 billion yuan (S$100 billion) of revenue by recognising sales in advance, an alleged fraud that dwarfs that of Luckin Coffee and Enron. Evergrande was fined 4.2 billion yuan, leaving even less money for offshore creditors. The liquidators said that they have been made aware of hundreds of credit actions, including the onshore bankruptcy proceedings of Guangzhou Kailong. Evergrande will be removed from the Hong Kong stock exchange on Aug 25, a year and a half after the shares were suspended and almost 16 years after it was listed. Information on Hui's latest status and whereabouts have been scarce. In late 2023, Bloomberg reported Hui was taken away by Chinese police, and was being monitored at a designated location under so-called residential surveillance, a type of police action that falls short of formal detention or arrest. Apart from a company filing confirming Hui being put under control, the Chinese authorities have remained tight-lipped about his status since then. That's why creditors are trying to unearth more information about people within Hui's personal network. They include Hui's two sons. One of them, Peter Xu, who once ran Evergrande's wealth management unit, was taken into custody after the developer allegedly failed to pay people who invested in its investment products, local media reported in 2023. The Guangdong police did not respond to a query for comment. Ex-wife properties Hui also has underage children and two grandchildren, who are being looked after by Hui's ex-wife in London, a March court filing shows. Ding holds real estate globally worth as much as US$350 million, including 33 luxury properties in Carnation Way in Nine Elms, south of the River Thames in London; a condominium on the 47th floor in One Wall Centre in the heart of downtown Vancouver, according to public records. An 'astonishing' amount of art collections were found in the 'humid' apartment in Guangzhou where Ding's mother resides, the liquidators' lawyer said in a previous court hearing. As for former CEO Xia, his whereabouts are unknown as he refused to provide his current address to the court. Xia has almost US$500 million in assets at stake from his previous salary, shares and investments in Evergrande, according to data compiled by Bloomberg. Xia managed to hold off disclosing his assets for about a year until around mid-year. Liquidators still have doubts about what he's shared so far, according to a court filing. He is still seeking relief from sanctions. Hui could deploy the same strategy used by his ex-wife and Xia, including asking for court adjournments, appealing and refusing to comply with disclosure rulings. 'The stakes couldn't be higher,' for Hui and his family, said Daniel Margulies, a partner at Simpson Thacher & Bartlett. BLOOMBERG
Business Times
25 minutes ago
- Business Times
South Korea to announce plan to restructure petrochemical sector facing ‘grave' situation
[SEOUL] South Korea's government will announce a plan this month to restructure the country's petrochemical sector, which is in a 'grave' situation, Industry Minister Kim Jung Kwan said on Thursday. South Korean petrochemical companies must take lessons from the restructuring of the country's shipbuilding industry in the late 2010s, when shipmakers had to liquidate assets and streamline business areas amid a sharp drop in orders, Kim said. Margins have plunged for petrochemical companies in South Korea and across the globe due to an oversupply of products caused by relentless capacity additions in the last decade, particularly in China, the biggest petrochemical market. Demand has also been sluggish over the last three to four years. 'A restructuring in the petrochem industry has been highly expected, given the industry is running merely 80 per cent of total capacity in Korea now - meaning we have about a 20 per cent glut here,' said Hwang Kyu Won, an analyst at Yuanta Securities Korea. Kim, who was speaking at a shipyard, said the petrochemical industry needed to take voluntary measures, including the 'adjustment' of facilities, his ministry quoted him as saying. There have been concerns as well over the financial health of South Korea's loss-making Yeochun NCC Co (YNCC), a Yeosu-based petrochemical maker that local media says faces 180 billion won (S$166.4 million) in loans coming due at the end of August. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up South Korea's government can use YNCC's travails as an opportunity for a large-scale restructuring in the industry, said the analyst Hwang. Analysts say the industry does not expect global petrochemical margins to recover before 2027. The last major restructuring for South Korea's petrochemical industry was in 1999 during the Asian Financial Crisis, when YNCC was formed. President Lee Jae Myung, who took office after a snap election in June, pledged during his campaign to pursue tax support for mergers and acquisitions in the petrochemical industry, and to exempt companies from antitrust regulations to allow more coordination of production and operations. South Korea's exports of petrochemical products stood at US$21.7 billion in the first half of this year, down 11.1 per cent from a year earlier, amid price declines and global oversupply. Total exports of petrochemical products were US$48 billion in 2024, accounting for 7 per cent of South Korea's total exports and a top-five export item after semiconductors, automobiles, machinery and petroleum products. South Korea is one of the world's largest importers of naphtha, a derivative of crude oil that is refined into chemical products used in plastics for automobiles, electronics, clothing and construction. If the country is forced to cut capacity, it could impact global oil markets. Other South Korean petrochemical companies besides YNCC are also seeing asset reshuffling. HD Hyundai is looking to acquire Lotte Chemical's naphtha cracker, or the companies may merge their cracker operations, trade sources have said. HD Hyundai said nothing has been decided yet. REUTERS
