Perplexity AI makes $34.5B bid for Chrome amid Google antitrust breakup

Perplexity AI, an artificial intelligence search company, has submitted a $34.5 billion bid to acquire Google’s Chrome browser, marking the first public attempt by an outside party to break up a key piece of the tech giant. The dramatic move comes as Google awaits a federal judge’s decision on potential antitrust remedies, with the Department of Justice explicitly calling for Chrome’s divestiture to level the playing field for search competitors.

What you should know: Google faces its most significant antitrust challenge since the Microsoft case over two decades ago, with Chrome at the center of the dispute.

• A federal ruling last year found Google holds a monopoly in its core search market, leading the DOJ to consider breaking up the company as a remedy.
• Google bundles search and other services into Chrome and preinstalls the browser on Chromebooks, giving it an unfair advantage according to regulators.
• The remedies decision is expected this month, creating uncertainty for investors about Alphabet’s future structure.

The big picture: Wall Street analysts have been valuing Alphabet’s key business units as potential divestiture targets, with estimates suggesting the company’s non-search assets are worth hundreds of billions.

• Alphabet’s market cap has jumped more than 150% to $2.5 trillion under CEO Sundar Pichai’s leadership.
• The company has been diversifying beyond search-related ads, which still account for the majority of its revenue.
• Some analysts believe a complete breakup could benefit shareholders by allowing them to own specific businesses they want.

Chrome’s contested value: Perplexity’s offer falls short of analyst estimates but represents a significant premium to the AI company’s own $9 billion valuation.

• Raymond James values Chrome at $50 billion based on 2.25 billion users and Google’s revenue-sharing agreements with device manufacturers.
• Barclays warns that Chrome divestiture could trigger a 15% to 25% drop in Alphabet’s stock, as the browser drives around 35% of Google’s search revenue.
• Gabriel Weinberg, CEO of rival search company DuckDuckGo who testified in the antitrust trial, estimates Chrome could sell for up to $50 billion in a spinout scenario.

Google Cloud’s massive potential: Analysts value Google’s cloud business between $549 billion and $682 billion, making it one of the company’s most valuable assets outside advertising.

• The unit generated $2.8 billion in operating profit on $13.6 billion revenue in Q2 2025, with a backlog of $106 billion in committed future revenue.
• Google Cloud is the third-largest player behind Amazon Web Services and Microsoft Azure but is growing faster than Amazon’s cloud business.
• The company agreed to acquire cloud security vendor Wiz for $32 billion in March, its largest deal ever.

YouTube’s media dominance: Google’s 2006 acquisition of YouTube for $1.65 billion is considered one of the best internet deals ever, with current valuations ranging from $271 billion to $550 billion.

• YouTube generated $9.8 billion in ad revenue in Q2 2025, representing 14% of Google’s total ad sales.
• The platform recently overtook Netflix as the top streaming service by audience engagement.
• MoffettNathanson, a research firm, calls YouTube the “new king of all media,” noting it would represent about 22% of Alphabet at the high end of valuations.

Waymo’s autonomous advantage: Alphabet’s self-driving car company operates the largest commercial autonomous ride-hailing fleet in the U.S. with over 1,500 vehicles.

• Waymo was valued at $45 billion in its November funding round, but analysts estimate it could be worth $60 billion to $300 billion.
• The company conducts more than 250,000 paid weekly trips across Atlanta, Austin, Los Angeles, Phoenix, and San Francisco.
• Raymond James predicts rides per week will reach 1.4 million in 2027 and climb to 5.8 million by 2030.

What they’re saying: Google’s legal chief strongly opposes the DOJ’s approach to remedies.

• “This approach would result in unprecedented government overreach and would harm the country’s effort to maintain economic and tech leadership,” said Legal Chief Kent Walker.
• D.A. Davidson analysts argue that “the only way forward for Alphabet is a complete breakup that would allow investors to own the business they actually want.”
• Bob O’Donnell of TECHnalysis Research, a market research firm, cautioned that Chrome is “not directly monetizable” because it serves as a gateway, making valuation challenging.