The AI startup Perplexity announced on August 12 that it intends to acquire Google’s Chrome browser for $34.5 billion as part of its efforts to compete with the tech giant’s dominance in web search, The Wall Street Journal (WSJ) reported. 

Perplexity’s bid is notably higher than its own estimated valuation of $18 billion. The company has told WSJ that investors, including major venture-capital firms, have committed to support the deal.

According to the report, valuations for Chrome’s enterprise value are quite variable, with recent estimates falling between $20 billion and $50 billion.

Tech investor and start-up founder Heath Ahrens called Perplexity’s move a “stunt” and said its valuation was nowhere near Chrome’s true value, given its unmatched data and reach, according to the BBC. 

Google is facing two antitrust lawsuits in the US as its dominance in search comes under scrutiny. Perplexity seems to have sent out a signal that a potential buyer is available, should the court mandate a sale. 

In a letter addressed to the Google CEO, Sundar Pichai, Perplexity stated that its proposal to purchase Chrome is “designed to satisfy an antitrust remedy in the highest public interest by placing Chrome with a capable, independent operator.”

Google has not shown any indication that it is open to selling Chrome. During testimony this year, Pichai told the judge that requiring the company to either sell the browser or share data with competitors would negatively impact Google’s business, discourage investments in new technologies, and possibly pose security threats. 

Additionally, US District Judge Amit Mehta is considering whether to compel Google to divest the browser in order to diminish Google’s control over web search. Last year, Mehta ruled that Google had unlawfully monopolised the search market and is expected to make a decision this month regarding how to restore competition.