AI startup Perplexity offers to buy Google's Chrome browser for $34.5 billion
Run by Aravind Srinivas, Perplexity is no stranger to headline-grabbing offers - it made a similar one for TikTok US in January, offering to merge with the popular short-video app to resolve U.S. concerns about TikTok's Chinese ownership.
Buying Chrome would allow the startup to tap the browser's more than three billion users for an edge in the AI search race as regulatory pressure threatens Google's grip on the industry.
Google did not immediately respond to a Reuters request for comment. The company has not offered Chrome for sale and plans to appeal a US court ruling last year that found it held an unlawful monopoly in online search. The Justice Department has sought a Chrome divestiture as part of the case's remedies.
Perplexity did not disclose on Tuesday how it plans to fund the offer. The three-year-old company has raised around $1 billion in funding so far from investors including Nvidia and Japan's SoftBank. It was last valued at $14 billion.
Multiple funds have offered to finance the deal in full, a person familiar with the matter said, without naming the funds.
As a new generation of users turns to chatbots such as ChatGPT and Perplexity for answers, web browsers are regaining prominence as vital gateways to search traffic and prized user data, making them central to Big Tech's AI ambitions.
Perplexity already has an AI browser, Comet, that can perform certain tasks on a user's behalf and acquiring Chrome would give it the heft to better compete against bigger rivals such as OpenAI. The ChatGPT parent has also expressed interest in buying Chrome and is working on its own AI browser.
Perplexity's bid pledges to keep the underlying browser code called Chromium open source, invest $3 billion over two years and make no changes to Chrome's default search engine, according to a term sheet seen by Reuters.
The company said the offer, with no equity component, would preserve user choice and ease future competition concerns.
Analysts have said Google would be unlikely to sell Chrome and would likely engage in a long legal fight to prevent that outcome, given it is crucial to the company's AI push as it rolls out features including AI-generated search summaries, known as Overviews, to help defend its search market share.
A federal judge is expected to issue a ruling on remedies in the Google search antitrust case sometime this month.
Perplexity's bid is also below the at least $50 billion value that rival search engine DuckDuckGo's CEO, Gabriel Weinberg, suggested Chrome may command if Google was forced to sell it.
Besides OpenAI and Perplexity, Yahoo and private-equity firm Apollo Global Management have also expressed interest in Chrome.
Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Middle East Eye
10 hours ago
- Middle East Eye
German manufacturer mulls relocating to US to avoid arms embargo against Israel
German automotive manufacturer Renk, which produces tank transmissions and engines for the Israeli military, is considering moving production to the US after the German arms embargo on Israel. Renk CEO Alexander Sagel mentioned the prospective shift on a post-earnings call, as reported by Reuters on Wednesday. The call comes five days after German Chancellor Friedrich Merz announced the country would freeze military exports to Israel that could be used in the Gaza Strip, amidst an Israeli plan to occupy the entire Palestinian enclave. Israel's war on Gaza has drawn international condemnation, and its plan to empty Gaza City of its one million inhabitants has drawn criticism even from staunch Israeli allies such as Germany. If enforced, the plan would amount to the forced expulsion of Palestinians, an illegal move under international law. Renk produces tank transmissions and engines for the Israeli military, accounting for two to three percent of the company's business portfolio. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters These parts are essential components in Israel's main Merkava battle tanks, which were used in the killing of six-year-old Hind Rajab and her family, as well as Namer armoured personnel carriers. 'If we cannot produce [transmissions] in Germany, we will relocate these volumes to a different plant, for example, to the US,' Segal said. 'This might take maybe 8 to 10 months, but if there's no move forward, we will do it because we have this business.' Renk has seen rising profits from its vehicle mobility solutions department in recent months, as Israel's genocide in Gaza continues. German embargo Chancellor Friedrich Merz said on Friday that the exports were frozen 'until further notice' and expressed concern for the plight of Gaza's Palestinians, who are suffering under Israeli-imposed starvation. Germany is Israel's second-largest supplier of weapons, following the US. Merz said it was Israel's right to disarm Hamas and seek the release of its captives in Gaza, but that these goals have become harder to achieve due to Israel's planned military action. "The German government believes that the even tougher military action in the Gaza Strip decided upon by the Israeli cabinet last night makes it increasingly difficult to see how these goals can be achieved," Merz said in a statement. Politically, Germany is one of Israel's closest allies. The country has not recognised Palestine and has committed to ignoring the International Criminal Court's arrest warrant against Israeli Prime Minister Benjamin Netanyahu. Norway sovereign wealth fund drops investments in 11 Israeli companies Read More » Germany has also cracked down on pro-Palestine speech by banning symbols associated with the movement, such as the inverted red triangle, and by withholding public funds from individuals and organisations that boycott Israel. After Israel's cabinet approved a plan to occupy the entire Gaza Strip, Germany announced it would halt 'any exports of military equipment that could be used in the Gaza Strip until further notice'. If enforced, a German arms embargo could represent a significant step in Israel's growing international isolation. Yet according to the Palestinian-led Boycott, Divest and Sanctions movement, on the same day Germany's arms embargo was announced, the country issued a licence to export a submarine to Israel. On 31 July, Slovenia became the first European Union country to impose an arms embargo on Israel. Citing the failure of the EU to impose restrictions itself, the central European country unilaterally banned the export or import of weapons to Israel.
Gulf Today
10 hours ago
- Gulf Today
Vietnam aims to become the next Asian tiger economy
Beneath red banners and a gold bust of revolutionary leader Ho Chi Minh in Hanoi's central party school, Communist Party chief To Lam declared the arrival of "a new era of development" late last year. The speech was more than symbolic- it signaled the launch of what could be Vietnam's most ambitious economic overhaul in decades. Vietnam aims to get rich by 2045 and become Asia's next "tiger economy" — a term used to describe the earlier ascent of countries like South Korea and Taiwan. The challenge ahead is steep: Reconciling growth with overdue reforms, an aging population, climate risks and creaking institutions. There's added pressure from President Donald Trump over Vietnam's trade surplus with the US, a reflection of its astounding economic trajectory. In 1990, the average Vietnamese could afford about $1,200 worth of goods and services a year, adjusted for local prices. Today, that figure has risen by more than 13 times to $16,385. Vietnam's transformation into a global manufacturing hub with shiny new highways, high-rise skylines and a booming middle class has lifted millions of its people from poverty, similar to China. But its low-cost, export-led boom is slowing, while the proposed reforms — expanding private industries, strengthening social protections, and investing in tech, green energy. It faces a growing obstacle in climate change. "It's all hands on can't waste time anymore," said Mimi Vu of the consultancy Raise Partners. Investment has soared, driven partly by US-China trade tensions, and the US is now Vietnam's biggest export market. Once-quiet suburbs have been replaced with industrial parks where trucks rumble through sprawling logistics hubs that serve global brands. Vietnam ran a $123.5 billion trade surplus with the US trade in 2024, angering Trump, who threatened a 46% US import tax on Vietnamese goods. The two sides appear to have settled on a 20% levy, and twice that for goods suspected of being transshipped, or routed through Vietnam to avoid US trade restrictions. During negotiations with the Trump administration, Vietnam's focus was on its tariffs compared to those of its neighbors and competitors, said Daniel Kritenbrink, a former US ambassador to Vietnam. "As long as they're in the same zone, in the same ballpark, I think Vietnam can live with that outcome," he said. But he added questions remain over how much Chinese content in those exports might be too much and how such goods will be taxed. Vietnam was preparing to shift its economic policies even before Trump's tariffs threatened its model of churning out low-cost exports for the world, aware of what economists call the "middle-income trap," when economies tend to plateau without major reforms. To move beyond that, South Korea bet on electronics, Taiwan on semiconductors, and Singapore on finance, said Richard McClellan, founder of the consultancy RMAC Advisory. But Vietnam's economy today is more diverse and complex than those countries were at the time and it can't rely on just one winning sector to drive long-term growth and stay competitive as wages rise and cheap labor is no longer its main advantage. It needs to make "multiple big bets," McClellan said. Following China's lead, Vietnam is counting on high-tech sectors like computer chips, artificial intelligence and renewable energy, providing strategic tax breaks and research support in cities like Hanoi, Ho Chi Minh City, and Danang. It's also investing heavily in infrastructure, including civilian nuclear plants and a $67 billion North-South high-speed railway, that will cut travel time from Hanoi to Ho Chi Minh City to eight hours. Vietnam also aspires to become a global financial center. The government plans two special financial centers, in bustling Ho Chi Minh City and in the seaside resort city of Danang, with simplified rules to attract foreign investors, tax breaks, support for financial tech startups, and easier ways to settle business disputes. Underpinning all of this is institutional reform. Ministries are being merged, low-level bureaucracies have been eliminated and Vietnam's 63 provinces will be consolidated into 34 to build regional centers with deeper talent pools. Vietnam is counting on private businesses to lead its new economic push — a seismic shift from the past. In May, the Communist Party passed Resolution 68. It calls private businesses the "most important force" in the economy, pledging to break away from domination by state-owned and foreign companies. So far, large multinationals have powered Vietnam's exports, using imported materials and parts and low cost local labor. Local companies are stuck at the low-end of supply chains, struggling to access loans and markets that favored the 700-odd state-owned giants, from colonial-era beer factories with arched windows to unfashionable state-run shops that few customers bother to enter. "The private sector remains heavily constrained," said Nguyen Khac Giang of Singapore's ISEAS-Yusof Ishak Institute. Again emulating China, Vietnam wants "national champions" to drive innovation and compete globally, not by picking winners, but by letting markets decide. The policy includes easier loans for companies investing in new technology, priority in government contracts for those meeting innovation goals, and help for firms looking to expand overseas. Even mega-projects like the North-South High-Speed Rail, once reserved for state-run giants, are now open to private bidding. By 2030, Vietnam hopes to elevate at least 20 private firms to a global scale. But Giang warned that there will be pushback from conservatives in the Communist Party and from those who benefit from state-owned firms. Even as political resistance threatens to stall reforms, climate threats require urgent action. After losing a major investor over flood risks, Bruno Jaspaert knew something had to change. His firm, DEEP C Industrial Zones, houses more than 150 factories across northern Vietnam. So it hired a consultancy to redesign flood resilience plans. Climate risk is becoming its own kind of market regulation, forcing businesses to plan better, build smarter, and adapt faster. "If the whole world will decide it's a can go very fast," said Jaspaert. When Typhoon Yagi hit last year, causing $1.6 billion in damage, knocking 0.15% off Vietnam's GDP and battering factories that produce nearly half the country's economic output, roads in DEEP C industrial parks stayed dry. Climate risks are no longer theoretical: If Vietnam doesn't take strong action to adapt to and reduce climate change, the country could lose 12-14.5% of its GDP each year by 2050, and up to one million people could fall into extreme poverty by 2030, according to the World Bank. Meanwhile, Vietnam is growing old before it gets rich. The country's "golden population" window — when working-age people outnumber dependents — will close by 2039 and the labor force is projected to peak just three years later. That could shrink productivity and strain social services, especially since families — and women in particular — are the default caregivers, said Teerawichitchainan Bussarawan of the Centre for Family and Population Research at the National University of Singapore. Vietnam is racing to pre-empt the fallout by expanding access to preventive healthcare so older adults remain healthier and more independent. Gradually raising the retirement age and drawing more women into the formal workforce would help offset labor gaps and promote "healthy aging," Bussarawan said. Associated Press
Arabian Post
10 hours ago
- Arabian Post
Trump's AI Chip Deal Could Open China Market to Downgraded Blackwell
President Donald Trump has authorised Nvidia and AMD to resume limited sales of artificial intelligence chips to China, marking a significant shift in U. S. trade policy. The agreement allows the companies to sell specific AI chips in exchange for a 15% revenue share paid to the U. S. government. This move deviates from previous strategies aimed at restricting China's access to advanced semiconductors due to national security concerns. The deal includes Nvidia's H20 chip and AMD's MI308, both intentionally downgraded for export. However, the Trump administration is considering extending this arrangement to Nvidia's more advanced Blackwell chips, albeit in a scaled-down form. Even with a 30%–50% performance reduction, these chips would still outperform China's domestic alternatives, potentially giving Nvidia and AMD a competitive edge in the Chinese market. Chinese authorities have responded cautiously to the deal. The Cyberspace Administration of China has cautioned major domestic tech firms, including Tencent, ByteDance, and Baidu, over their purchases of Nvidia's H20 AI chips, expressing concerns about national security and data privacy. The government has advised against using these chips in government-related projects and, in some cases, ordered a suspension of purchases. ADVERTISEMENT Despite these concerns, demand for the chips remains high due to their superior performance. Nvidia has emphasized that the H20 is not a military or government-focused product, noting that China does not rely on U. S. chips for official uses. The company is also preparing to launch a new artificial intelligence chip for the Chinese market at a significantly reduced price compared to its previously restricted H20 model. The upcoming GPU, part of Nvidia's latest Blackwell-architecture AI chips, is expected to cost between $6,500 and $8,000, making it substantially lower than the H20's price tag of $10,000 to $12,000. The Trump administration's decision to allow the sale of these downgraded chips represents a significant shift from the previous administration's approach to semiconductor exports. While the move has been welcomed by Nvidia and AMD, it has raised concerns among some lawmakers and analysts about the potential erosion of national security safeguards and the risks of enabling Chinese progress in AI.
