AI search startup Perplexity has surprised the tech industry by submitting an unsolicited $34.5 billion all-cash proposal to acquire Google's Chrome browser from parent company Alphabet, the Reuters reported.

According to internal documents, cited by the agency, Perplexity's proposal includes commitments to maintain Chrome's open-source Chromium foundation, invest $3 billion over two years in development, and preserve current default search arrangements. 

Perplexity's ambitious bid represents more than double Perplexity's own $14 billion valuation as the company seeks access to Chrome's massive three billion user base.

Led by CEO Aravind Srinivas, Perplexity earlier in January had proposed to merge with TikTok's US operations to address regulatory concerns over Chinese ownership.

The Chrome bid comes as multiple tech giants circle the popular browser amid antitrust pressure. OpenAI, Yahoo, and private equity firm Apollo Global Management have all reportedly shown interest in Chrome following a federal court ruling that found Google operates an illegal search monopoly.

 

The Justice Department has pushed for Chrome's divestiture as part of potential remedies.

Google has not put Chrome up for sale and intends to challenge the monopoly ruling through appeals. 

Perplexity has raised approximately $1 billion from investors including Nvidia and SoftBank - the company claims multiple unnamed funds are prepared to fully finance the acquisition.

The startup last month  launched its AI-powered web browser, Comet, in a direct challenge to Google Chrome.