Perplexity AI has put forward an updated proposal to merge with TikTok, allowing the U.S. government to gain up to 50 percent ownership of the newly formed entity.
The Associated Press initially reported on this revised proposal. A source familiar with the bid confirmed to StartupSuperb that the details shared by the AP are correct.
The AI search engine previously suggested establishing a new company by combining Perplexity, TikTok US, and additional equity investors. The updated proposal indicates that the government would acquire its share following an initial public offering of at least $300 million, while TikTok’s existing owner ByteDance from China may still retain a stake, as noted by the AP.
Perplexity reportedly modified its proposal in response to feedback from the administration of President Donald Trump.
Last weekend, TikTok faced a temporary shutdown due to legislation requiring ByteDance to divest from the app or risk a ban in the United States. The platform resumed operations after Trump announced his intention to sign an executive order allowing an extension of the sale deadline. He also expressed his desire for the U.S. to hold “50% ownership,” although it remained unclear whether he was referring to the government or U.S. investors.
Additionally, a report this week indicated that the White House was negotiating an agreement whereby Oracle, which currently manages the infrastructure for TikTok’s U.S. operations, would take control. When questioned, Trump mentioned that he had been in discussions with “numerous individuals regarding TikTok” but had “not engaged with Oracle.”