SAN FRANCISCO (Diya TV) — Perplexity AI shocked the tech world by making a $34.5 billion offer to buy Google’s Chrome browser. The bid comes just one week before Google marks the 20th anniversary of its landmark initial public offering.
While analysts doubt the offer will go through, the move underscores growing pressure on Google as regulators and rivals question its dominance in internet search. The U.S. Department of Justice is already pushing for a breakup of Google’s business, and Chrome is at the center of that debate.
Perplexity AI, valued at $18 billion in July, is best known for its AI-powered search engine. The company claims its investors are ready to fund the deal, though it has not named its backers. Analysts say the offer falls below Chrome’s estimated market value.
Raymond James and DuckDuckGo CEO Gabriel Weinberg place Chrome’s worth closer to $50 billion, based on its 2.25 billion global users. Despite the lower price, Perplexity’s bid is the first public attempt by an outside company to buy a piece of Google’s core business.
Google launched Chrome in 2008. It quickly became the world’s most widely used web browser and now plays a key role in Google’s ad business. Data from Chrome supports targeted advertising, which fuels most of Alphabet’s revenue.
Barclays analysts warn that if Chrome is spun off, Alphabet’s stock could fall between 15% and 25%. They estimate Chrome drives about 35% of Google’s search revenue.
The DOJ has also called for Google to divest Chrome to ensure fair competition. Google legal chief Kent Walker argued that such a step would amount to government overreach and harm the United States’ tech leadership.
Alphabet, Google’s parent company, was created in 2015 to house its growing portfolio. Under CEO Sundar Pichai, Alphabet’s market value has soared to $2.5 trillion. While search advertising remains its backbone, Alphabet has expanded into cloud services, video, and autonomous driving.
Google Cloud has emerged as one of Alphabet’s fastest-growing divisions. The business turned profitable in 2023. In the second quarter of 2025, it reported $13.6 billion in revenue and a $2.8 billion operating profit. Analysts value the unit between $549 billion and $682 billion, citing its AI infrastructure and strong enterprise adoption.
Alphabet is also investing heavily in security, acquiring cloud security firm Wiz for $32 billion earlier this year.
YouTube, acquired in 2006 for $1.65 billion, has become one of Google’s most valuable assets. The platform brought in $9.8 billion in ad revenue in the second quarter of 2025, up 13% from last year. It now accounts for 14% of Google’s ad sales.
Valuation estimates for YouTube vary widely. MoffettNathanson puts it as high as $550 billion, calling it the “new king of all media.” TD Cowen gives a lower estimate of $271 billion. Still, YouTube recently overtook Netflix as the top streaming service in terms of audience engagement.
Waymo, Alphabet’s self-driving car company, is another major piece of the puzzle. The company operates the largest commercial autonomous fleet in the U.S., logging more than 100 million driverless miles.
Valuations for Waymo range from $60 billion to $300 billion. Analysts expect its weekly rides to surge from 1.4 million in 2027 to nearly 6 million by 2030. The service is expanding into more cities, including Philadelphia and Dallas.
Despite those gains, Alphabet’s “Other Bets” category, which includes Waymo and other moonshot projects, continues to post losses. In the second quarter, the division lost $1.2 billion on $373 million in revenue.
The DOJ’s remedies decision is expected this month, and a forced divestiture could reshape Alphabet’s future. Investors face uncertainty as Google spends billions on AI while fending off new search rivals like ChatGPT and Perplexity.
Analysts at D.A. Davidson believe a breakup could benefit shareholders. In a note this year, they argued that separating Alphabet’s units would allow investors to focus on the businesses they value most.
For now, Perplexity’s bid for Chrome may not succeed, but it signals a growing challenge to Google’s dominance. Whether through regulators or rivals, the pressure to break apart one of the world’s most powerful tech companies has never been stronger.
