A new rival to Alphabet’s Google has entered the internet search market with a bid to merge with TikTok. Perplexity AI, which started in 2022 and offers both search engine and AI chatbot services, is seeking a deal with TikTok’s US business. This move could make Perplexity a stronger competitor to Google, potentially impacting its stock price.
Perplexity has received funding from high-profile investors including Amazon founder Jeff Bezos, Nvidia, and venture firm New Enterprise Associates. The company’s valuation stands at $8 billion after its latest funding round.
TikTok’s parent company ByteDance is reportedly exploring a deal with Tesla CEO Elon Musk, who could be a key player in the bid process. However, analyst Daniel Ives believes Perplexity’s bid has no chance of success due to low valuations.
The merger proposal would create a new entity with deep-pocketed investors and aims to address national security concerns over TikTok’s US operations. Oracle, which provides cloud computing services to TikTok, could be significantly impacted by any changes in the company’s status.
As President-elect Donald Trump prepares to take office, his stance on the issue remains unclear. A potential deal between ByteDance and Perplexity could have significant implications for social media stocks such as Meta Platforms and Snap.
Source: https://www.investors.com/news/technology/google-stock-perplexity-search-rival-seeks-tiktok-deal