Alphabet(US:GOOG) 3 6 Ke·2025-08-13 04:43Core Viewpoint - A notable reverse acquisition in the AI search sector is occurring, with the startup Perplexity planning a cash acquisition of Google's Chrome browser for $34.5 billion amid Google's antitrust challenges [1][3]. Group 1: Company Overview - Perplexity, founded in August 2022, has rapidly grown to a valuation of $18 billion, up from $1.5 billion in early 2023, reflecting a tenfold increase in just over two years [3][12]. - The company reported an annual recurring revenue (ARR) surge from $5 million in January 2023 to $120 million by May 2025, indicating strong revenue growth [3][4]. Group 2: Market Context - The AI search market is experiencing significant growth, with traditional search engines being disrupted by AI models that provide direct answers, reducing reliance on ad-driven search results [3][4]. - Perplexity's search processing volume is significantly lower than competitors, handling only 1/25 of OpenAI's and 1/900 of Google's search volume, highlighting the challenges faced by AI search companies in gaining user traction [4][11]. Group 3: Acquisition Dynamics - Perplexity's acquisition bid for Chrome comes at a time when Google is under pressure from antitrust rulings, which may force it to divest Chrome [1][11]. - The acquisition proposal includes a commitment to invest $3 billion in maintaining the open-source Chromium code and not altering Chrome's default search engine if the acquisition is successful [10][11]. Group 4: Competitive Landscape - Google is actively enhancing its search capabilities with AI features, achieving a record search revenue of $54.2 billion in Q2 2025, a 12% year-over-year increase [7][10]. - The competitive landscape is intensifying, with other AI companies like OpenAI also expressing interest in acquiring Chrome, indicating a strategic shift towards browser and content platform acquisitions [10][11].