Merger instead of sale: Perplexity AI wants to save TikTok in the US

Perplexity AI proposed on Saturday, a day before TikTok was blocked in the United States, a merger with the platform’s American division. The proposal involves most ByteDance investors retaining their stakes and Perplexity gaining access to TikTok’s huge base of users and content. According to CNBC, the deal could take months, but Perplexity AI believes it has a chance since ByteDance has publicly said it will not sell TikTok in the US.

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Previously, newly elected US President Donald Trump said he would likely give TikTok an additional 90 days to reach an agreement, so if this is done, a possible deal between Perplexity and ByteDance will have time to take place. TikTok CEO Shou Zi Chew also issued a statement expressing hopes that the problem could be resolved. “We want to find a solution that keeps TikTok available to users in the United States,” he said Friday in a video posted on the platform.

Perplexity AI’s proposal does not represent a sale, but rather a merger, which the company believes improves its chances of success, since ByteDance has previously stated its reluctance to sell TikTok. The CNBC source, who wished to remain anonymous, also noted that the deal would give Perplexity AI access to TikTok’s “huge user base,” allowing it to compete with giants like Google and OpenAI.

It is worth saying that Perplexity, which is essentially a competitor to OpenAI and Google in the field of AI search, has shown rapid growth in 2024. After starting the year with a valuation of $500 million, the company ended the year with a valuation of about $9 billion amid the generative AI boom, managing to attract investors despite accusations of plagiarism. In addition, experts are increasingly beginning to say that technologies supporting AI search could change the way we access information, posing a threat to Google, which also increases interest in Perplexity AI.

TikTok risks becoming unavailable in the US as soon as this Sunday (January 19) unless the Biden administration provides guarantees that it will not penalize Apple, Google and other services for hosting the app in their stores. However, the proposed merger with Perplexity AI could be a compromise that would preserve the popular platform for American users.