As the possibility of a TikTok ban approaches in the United States, Perplexity AI has emerged as a contender looking to provide the video application with a new corporate structure.
CNBC initially reported on Perplexity’s interest. A source familiar with the situation confirmed to StartupSuperb that Perplexity, led by CEO Aravind Srinivas, has put forth a proposal to merge with TikTok US.
The insider also shared additional information regarding the proposal, noting that it aims to establish a new entity that will integrate Perplexity, TikTok US, and new equity partners. Furthermore, existing investors in TikTok’s parent company, ByteDance, would likely maintain their stake; and through the merger, Perplexity seeks to enhance its AI search engine with more video content.
A law mandating ByteDance to either divest TikTok or face a US ban is set to become effective on Sunday, January 19. This date coincides with President Joe Biden’s final day in office, and officials from his administration have indicated that the enforcement of the ban will be left to the subsequent administration.
In the meantime, President-elect Donald Trump, who will be inaugurated on Monday, has stated he would “most likely” grant TikTok a 90-day extension. The CEO of TikTok expressed gratitude to Trump in a video for his assistance.
However, TikTok has warned that without clearer assurances of non-enforcement from the Biden administration, it will be “forced to go dark” on Sunday.
Despite numerous potential buyers expressing interest in TikTok, ByteDance has consistently stated that it does not plan to sell. The company dismissed reports suggesting that the Chinese government might consider an acquisition by Elon Musk as “pure fiction.” CNBC reports that Perplexity is optimistic about resolving these concerns by suggesting a merger instead of a straight sale.