WSJ What’s News: "Can Perplexity’s Longshot Bid for Google Chrome Succeed?"

Release Date: August 12, 2025
Host: Alex Osolev, The Wall Street Journal

1. U.S. Inflation Data and Economic Implications

[00:31] Alex Osolev opens the episode by discussing the latest U.S. inflation figures released by the Labor Department. In July, consumer prices increased by 2.7% year-over-year, maintaining the same rate as June and staying below economists' expectations of a 2.8% rise. However, the core inflation (excluding food and energy) rose by 3.1%, surpassing the forecasted 3%.

Rachel Wolf, WSJ Economics Reporter, provides further insights:

• [01:31] Katherine Blunt explains, "In June, we started to see the first signs that tariffs were beginning to get passed on to consumers. We saw a little more of that in July. So in categories that have a lot of imports like furniture, tires, pet products, there were larger than normal increases last month."

However, the impact was not uniform across all sectors:

• [02:18] Alex Osolov asks about other factors driving inflation.
• [02:21] Katherine Blunt responds, "Services like airline tickets and medical services and car maintenance went up more than predicted," attributing this to the strong job market and ongoing consumer spending.

This robust consumer spending, coupled with the lingering effects of tariffs, suggests a complex inflation landscape influenced by multiple factors beyond just trade policies.

2. Market Reactions to Inflation Data

The release of the inflation report bolstered investor confidence regarding potential Federal Reserve rate cuts:

• Nasdaq surged by 1.5%, marking its 19th record high of the year.
• S&P 500 climbed 1.1%, achieving its 16th record.
• Dow Jones also advanced by 1.1%.

3. President Trump's Criticism of Goldman Sachs' Economic Predictions

[03:09] Alex Osolev highlights a notable development where President Trump publicly called for Goldman Sachs CEO David Solomon to replace the firm's chief economist. Trump criticized the economist for inaccurate predictions related to tariffs and their impact on the U.S. economy:

• Trump stated, "Go out and get himself a new economist because the bank… made a bad prediction a long time ago on the market and tariffs." ([03:25])

Although Goldman Sachs declined to comment, this move underscores the administration's broader strategy to challenge financial institutions it perceives as opposing its economic policies.

4. Perplexity’s Unsolicited $34.5 Billion Bid for Google Chrome

A surprising twist in the tech industry was reported when AI startup Perplexity made an unsolicited offer to acquire Google’s Chrome browser for $34.5 billion:

• [05:10] Alex Osolev introduces the story, emphasizing that Perplexity's valuation is approximately $18 billion, making the bid more than double their current worth.

Meredith McGraw, WSJ Reporter covering Alphabet, elaborates:

• [05:25] Meredith McGraw states, "The company says that it has commitments from several large funds, including VC funds, to back the entirety of the transaction."

The timing of this bid coincides with ongoing antitrust scrutiny:

• [05:47] Meredith McGraw connects the offer to the potential spinoff of Chrome following a U.S. District Judge's ruling against Google's monopolistic practices in the search market. While analysts deem a forced sale unlikely, the proposal introduces an unpredictable element to the legal proceedings.

Google has not commented on the offer, and the final ruling is expected within the month, leaving industry watchers keenly observing Perplexity’s maneuvers.

5. White House’s Review of Smithsonian Museums

In a significant move to influence cultural institutions, the White House announced plans to conduct a comprehensive review of Smithsonian museum exhibitions, materials, and operations:

• [07:02] Alex Osolev transitions to this topic, highlighting efforts to align the museums with President Trump's vision of American history.

Rachel Wolf provides detailed coverage:

• [07:52] Rachel Wolf explains, "The White House is looking to do a pretty comprehensive review of everything from the little placards that are under exhibits in the Smithsonian museums to how curators come up with the ideas for the exhibits or even internal communication on their programming."

The objectives are clear:

• [09:11] Alex Osolev questions the administration's goals.
• [09:13] Rachel Wolf responds, "President Trump has really tried to put his own touch on some of the country's cultural institutions," focusing on "putting American history in a positive light."

The review process includes:

• Detailed walkthroughs of current exhibits.
• Interviews with curators to ensure alignment with the executive order aimed at "restoring truth and sanity to American history."
• A structured timeline with phased expectations over the next 120 days, targeting preparations for the 250th anniversary celebrations in 2026.

The Smithsonian Institution has yet to respond officially, though ongoing interactions suggest a collaborative yet scrutinizing approach.

6. Potential $500 Million Settlement with Harvard University

The episode concludes with a high-stakes negotiation between Harvard University and the Trump administration, potentially resulting in a $500 million settlement:

• [10:50] Alex Osolev outlines the details, indicating that this would be the largest payout in the administration's campaign against universities accused of failing to curb anti-Semitism on campuses.

Key terms of the proposed settlement include:

• Harvard would allocate $500 million to workforce and vocational programs.
• In exchange, the administration would restore billions in frozen federal funds for research and other initiatives.
• The university must adhere to federal regulations on merit-based hiring and admissions, alongside protecting students' civil rights.
• Notably, there would be no external monitor appointed to oversee compliance.

Negotiations are ongoing, with a final agreement expected within the week. Harvard has declined to comment, and the settlement awaits President Trump's approval.

Conclusion

This episode of WSJ What’s News delves into pivotal economic indicators, high-profile corporate maneuvers, and significant political interventions shaping the U.S. landscape. From inflation trends and market responses to contentious interactions between the presidency and financial institutions, alongside groundbreaking bids in the tech sector and cultural institution reviews, the podcast provides a comprehensive overview of the forces driving today’s headlines.

Produced by: Pierre Bienname
Supervising Producer: Michael Kosmides
Host: Alex Osolev