AI startup Purple Lexity has suggested a plan worth $34.5 billion (approximately 47 trillion won).
If you send a letter to Google CEO Sundar Pichai and connect AI to the Chrome search box, you can quickly access AI as soon as you open the web. With the rise in popularity of artificial intelligence, securing AI learning data is also boosting advertising revenue through beneficial traffic.
Artificial intelligence startup Purple Lexity has proposed acquiring Google’s web browser “Chrome” for $34.5 billion (approximately 47 trillion won). This amount is double the valuation of Purple Lexity itself (about $18 billion), signaling a bold strategy in light of potential anti-trust actions by the U.S. Department of Justice (DOJ). While the DOJ’s anti-monopoly lawsuit raises the possibility of Google’s sale of Chrome, OpenAI and Yahoo are also interested, intensifying competition in the browser market as it evolves into a future interface for Internet interactions.
According to the Wall Street Journal (WSJ) on the 12th (local time), Purple Lexity stated in a letter to Google CEO Sundar Pichai, “If the court mandates the sale of Chrome, we are prepared to take over,” further asserting, “We will ensure that Chrome is managed by a competent and independent operator in the public interest.”
Following a federal court ruling that indicated Google’s monopoly in the search market was bolstered by exclusive contracts with mobile carriers and device manufacturers, the U.S. Department of Justice has proposed significant corrective measures. These include the forced sale of Chrome, prohibiting financial incentives to device makers like Apple, and requiring the sharing of search data among competitors. Google has expressed intentions to appeal this ruling.
As of July, Chrome dominates the global browser market with a 67.9% share, boasting over 3.5 billion users worldwide. Browsers are evolving into vital interfaces where artificial intelligence (AI) gathers, analyzes data, provides search capabilities, makes recommendations, and facilitates transactions beyond mere search functionalities. AI companies like OpenAI are considering acquisitions to gain access to extensive user data and distribution channels for AI services.
Purple Lexity offers an interactive AI search service and its own AI browser, ‘Comet.’ If it acquires Chrome, it could seamlessly integrate AI search and recommendation features into billions of user environments globally, thereby minimizing competition with major tech entities like OpenAI and Microsoft.
OpenAI similarly views Chrome as a strategic asset. If they acquire Chrome, OpenAI could directly link its services to the primary search box, enabling automatic use of OpenAI services whenever users conduct searches. This would significantly expand ChatGPT’s user base. According to Bloomberg, OpenAI’s product manager Nick Turley mentioned during a Google anti-trust trial in April that they “would be willing to take over if Chrome is put up for sale,” emphasizing the importance of securing browser technology for data access and AI service distribution.
OpenAI believes that billions of user interactions and extensive online content could be leveraged to enhance and accelerate the development of the GPT model, drastically improving chatbot performance. “Chrome is the most critical strategic asset on the web,” stated Brian Provost, Yahoo’s search general manager, asserting that acquiring it could push their search market share into double digits.
However, with an estimated market value of $50 billion, it seems unlikely that Purple Lexity can independently raise sufficient funds. Their cash reserves were approximately $850 million as of last year. Purple Lexity noted that “multiple large investors could provide funding,” but did not disclose any specific names or terms.
Industry experts suggest that Google is unlikely to sell Chrome, as it is a cornerstone of their search and AI strategies and an essential asset for data collection and service distribution. Google characterizes the potential sale as an “extreme measure” and strongly opposes it, citing concerns related to innovation and security. Furthermore, the technical challenges associated with completely separating Chrome from Google Services are substantial, and it is likely that Google would resist any ruling, resulting in a prolonged legal battle, making an immediate sale improbable.
