Perplexity has made a bid to acquire TikTok and completely overhaul its algorithm. In a statement published on its blog, it said its independent status and technical capabilities allow it to modernize TikTok’s algorithm “without creating a monopoly” — unlike competitors who would likely want to preserve ByteDance’s influence.
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Perplexity’s plan calls for a complete overhaul of TikTok’s algorithm under full US oversight. The company intends to make its recommendation system “transparent,” open-source, and upgrade its AI infrastructure using Nvidia Dynamo technology in US data centers.
Perplexity also plans to add a citation feature to videos, similar to the AI platform’s existing capabilities, and integrate its search algorithms with TikTok’s video library. The startup also plans to improve personalization for users who choose to link their Perplexity and TikTok accounts. According to the company, this “can help serve more relevant content on TikTok.” It also plans to introduce an automatic video translation feature.
TikTok owner ByteDance, however, has been reluctant to sell the platform’s U.S. segment, creating uncertainty among users. In January, the U.S. Supreme Court upheld the government’s right to ban the app, after which TikTok remained unavailable in the country for about 14 hours. However, President Donald Trump signed an executive order delaying the ban for 75 days, which expires on April 5.
It’s worth noting that Perplexity isn’t the only contender to buy TikTok. The AI startup first proposed a deal back in January, but faced stiff competition from tech giants Oracle and Microsoft, as well as a consortium of investors led by Frank McCourt. It’s unclear whether TikTok is taking Perplexity’s offer seriously, given that the platform’s U.S. valuation is between $30 billion and $50 billion, while Perplexity is in talks for a new $18 billion round of funding.
Some experts believe that Perplexity’s offer to buy TikTok is nothing more than a marketing ploy to attract attention to the company.
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