Perplexity AI Proposes Merger with TikTok US Amid Ban Threat
US-based search engine startup Perplexity AI has submitted a proposal to merge with TikTok US, according to a source familiar with the matter. The bid, directed at TikTok’s Chinese parent company ByteDance, was submitted on Saturday, Reuters reported.
TikTok faces a potential ban in the United States starting Sunday unless it severs ties with ByteDance. However, President-elect Donald Trump indicated on Saturday that he might grant the platform a 90-day extension starting Monday.
CNBC was the first to report on the bid.
Perplexity AI’s proposal outlines a plan to merge with TikTok US and form a new entity by combining the merged company with New Capital Partners. The structure would allow most of ByteDance’s existing investors to retain their equity stakes, while also integrating more video features into Perplexity’s offerings, the source revealed under anonymity due to the confidential nature of the discussions.
The proposed merger is positioned as an alternative to a sale, which Perplexity believes improves its chances of success.
Perplexity AI, known for its advanced search tools powered by large language models like OpenAI and Meta Platforms’ Llama, enables users to receive quick, citation-backed answers to questions.
TikTok, a platform that has significantly influenced online culture, supported small businesses, and captivated nearly half of the American population, announced on Friday that it would shut down in the US on Sunday unless the Biden administration guarantees tech giants like Apple and Google will not face enforcement actions after the ban takes effect.
Neither TikTok nor New Capital Partners has commented on the development.
