Perplexity AI proposes TikTok US merger to avoid ban

Perplexity’s technology could enhance TikTok’s search and discovery features, if merger goes through
An undated image of TikTok (left) and Perplexity (right) logo. — TikTok/Perplexity/Canva
An undated image of TikTok (left) and Perplexity (right) logo. — TikTok/Perplexity/Canva 

United States (US) search engine startup Perplexity AI has made a striking move to merge with TikTok’s US operations, aiming to save the app from a looming ban. However, Perplexity has submitted its bid to TikTok’s Chinese parent, ByteDance, on Saturday.

TikTok, the popular short-video platform with millions of US users, is at risk of being banned unless it severs ties with ByteDance. The Biden administration may grant a 90-day extension on Monday, giving the platform more time to address concerns.

According to Reuters, Perplexity AI’s merger proposal includes forming a new company by combining TikTok US, Perplexity, and investment firm New Capital Partners. This plan would allow ByteDance’s current investors to keep their stakes while Perplexity benefits from TikTok’s massive video content library.

Perplexity AI is known for its advanced search tools that provide instant answers with accurate citations. Powered by AI models from OpenAI and Meta, the platform is designed to simplify information access. If the merger goes through, Perplexity’s technology could enhance TikTok’s search and discovery features.

However, TikTok announced on Friday that it will go dark in the U.S. on Sunday if no assurances are provided by the administration to protect companies like Apple and Google from penalties. 

This merger, if approved, could save TikTok’s US operations while strengthening Perplexity AI’s position in the tech world. Users of both platforms could see improved services and features as a result of this collaboration.