Perplexity AI, a US search engine startup, has submitted a bid to merge with TikTok’s US operations in an attempt to avoid a potential ban. The merger proposal would create a new entity combining Perplexity with TikTok US and New Capital Partners.
According to a source, the proposed structure would allow most existing ByteDance investors to retain their stakes while bringing more video content to Perplexity. This approach is seen as a favorable option for Perplexity AI, as it avoids a traditional sale of the company.
Perplexity AI’s search tools utilize large language models, including those from OpenAI and Meta Platforms, to provide users with fast answers to questions. The proposal aims to capitalize on this technology while addressing concerns about the US ban.
TikTok has stated that it will go dark in the US on Sunday unless assurances are provided by President Biden’s administration to major companies like Apple and Google.
Source: https://www.reuters.com/markets/deals/perplexity-ai-bids-merge-with-tiktok-us-cnbc-reports-2025-01-18