Google receives an offering of $34.5 billion from Perplexity for Chrome support
In a move that has alarmed Mozilla and piqued the interest of potential search rivals, the tech industry is abuzz with the possibility of Perplexity, an AI search company, acquiring Google's Chrome browser. This potential acquisition comes at a time when Google is facing antitrust scrutiny, with the Department of Justice suggesting that Google divest Chrome to address monopoly concerns.
At present, Google has not responded to Perplexity's non-binding offer of $34.5 billion, a sum that could significantly impact the tech industry, especially if other companies like OpenAI also express interest in acquiring Chrome.
The Potential Impact on the Search Market
If Perplexity were to acquire Chrome, it could lead to several changes in the search market:
- Disruption and Innovation: The acquisition could disrupt the integrated environment of Google services, potentially leading to new AI-driven features and customization options for Chrome. This could innovate the browser space but might also complicate current SEO strategies and analytics.
- Antitrust Resolution: Acquiring Chrome could address Google's antitrust issues by reducing its market dominance, setting a precedent for other tech companies facing similar regulatory challenges.
- Privacy and Competition Concerns: Such a sale might raise privacy concerns and affect user experience, as well as impact competition in the browser market. It could lead to a shift in how browsers are developed and used, with potential implications for digital marketing strategies.
It's important to note that the acquisition remains speculative at this point, and its impact would depend on whether Google decides to sell Chrome and which company ultimately purchases it.
The Competitive Landscape
In 2023, Microsoft added AI to its Bing search service, but it hasn't significantly changed the dynamics of the search market. OpenAI's ChatGPT entered the search market last October, reportedly exceeding Google AI Overviews in daily queries by a small percentage. OpenAI is also said to be preparing to launch its own browser, further adding to the competitive landscape.
In the midst of this, almost every browser maker, with the exception of Vivaldi, has been adding or experimenting with generative AI services. For instance, Perplexity recently launched its own browser, Comet, based on Chromium.
Legal Challenges and Controversies
The potential acquisition also raises legal issues, such as the lawsuit Suetopia, which addresses potential legal issues that businesses may face due to the use of generative AI. Furthermore, researchers have demonstrated how poisoned telemetry can turn AIOps into AI Oops, posing a potential threat to the industry.
In a recent development, OpenAI's CEO, Sam Altman, admitted that the sudden deprecation of old models by OpenAI was a mistake. This admission could have implications for the potential acquisition, as it raises questions about the stability and reliability of AI services.
Judge Amit Mehta, who previously ruled that Google acted unlawfully to monopolize online search services, is expected to decide the appropriate remedy before the end of the month, which may include the forced divestiture of Chrome. If Google is indeed required to sell Chrome, the tech industry expects Google to be weakened, not only due to Judge Mehta's search case but also due to Judge Leonie Brinkema's online advertising decision in April and Judge James Donato's Android ruling last October.
Chrome, the most widely used web browser in the world with an estimated global market share of about 67.9 percent, holds a significant position in the tech industry. The outcome of the potential acquisition and subsequent regulatory decisions will undoubtedly shape the future of the search market.
