AI dealmaking grows as Perplexity bids for Chrome

An editorial look at a cash bid for Chrome that highlights how hype powers unusual AI deals.

AI dealmaking circus grows as Perplexity bids for Chrome

Perplexity, backed by venture capital, has made a cash offer to acquire Google's Chrome browser, proposing 35 billion dollars. Chrome is not for sale and Google has shown no appetite for a sale. The move comes as Google faces a federal antitrust case over search dominance, with a court potentially ordering remedies including divesting Chrome. Analysts have tentatively valued Chrome in the tens of billions, underscoring how big the prize is even if the sale is unlikely.

Perplexity says the deal would leverage its own browser, Comet, and shift the experience from browsing to thinking. The wider AI boom has been marked by aggressive and often opaque deal structures, including all cash and stock transactions tied to speculative market estimates rather than current profits. The scene includes other large plays, a reliance on asset-backed financing, and a willingness to stretch traditional metrics to justify bold bets. The result is a market that prizes potential over immediate earnings, a pattern that mirrors past tech cycles.

The bigger question is what such deals mean for the public and for regulators. If this kind of deal signals a new normal, scrutiny could rise and capital could rethink risk. Until then, the parade goes on and investors ride the wave while the music plays, even as some skeptics warn that the boom may not last.

This episode illustrates a shift in tech finance. Valuation today often rests on vague ideas of total addressable markets rather than tangible cash flow. That creates room for optimism, but also for mispricing and sudden reversals. The Perplexity bid, if nothing else, tests how far cash can travel when confidence in AI’s upside is universal and profits are deferred. Regulators watching antitrust remedies may also assess whether high-profile acquisitions could reshape consumer choices and competitive landscapes.

The risk is not just financial. Public trust and market stability are at stake when spectacular offers collide with regulatory realities. If more players mimic this approach, the line between strategic product moves and speculative bets could blur further, increasing volatility and inviting backlash from lawmakers and customers who fear overreach or reduced choice. The broader signal is clear: AI hype is reshaping how deals are priced, and that pressure will outlast any single negotiation.

Highlights

The next chapter will reveal whether hype translates into sustainable value or a cautionary tale for investors and regulators alike.