Thursday, 24 April 2025
26.1 C
Singapore
29 C
Thailand
19 C
Indonesia
28.4 C
Philippines

Perplexity AI proposes merger with TikTok US

Perplexity AI submitted a merger bid for TikTok US, aiming to integrate video into its AI search engine before the ban deadline.

With the United States considering a ban on TikTok, Perplexity AI has stepped forward as the latest bidder, aiming to offer the popular video app a fresh corporate home.

According to reports from CNBC, Perplexity AI, led by CEO Aravind Srinivas, has formally submitted a proposal to merge with TikTok’s US operations. Sources close to the matter confirmed the bid to TechCrunch and shared details about the proposed merger.

A merger, not a sale

The plan put forth by Perplexity AI involves creating a new entity that combines Perplexity, TikTok US, and new equity partners. ByteDance, TikTok’s parent company, would allow most current investors to retain their equity under the new structure.

By merging with TikTok, Perplexity AI seeks to integrate the platform’s vast library of video content into its AI-powered search engine. This move could transform how users interact with search results, adding a more dynamic and engaging visual element to AI-driven searches.

Unlike traditional sale bids, Perplexity’s merger proposal might appeal to ByteDance, which has resisted selling TikTok outright. This alternative approach could help address ByteDance’s concerns about losing control over the popular app while complying with US government demands.

A race against time

The urgency stems from a looming deadline. A law requiring ByteDance to sell TikTok or face a ban in the US is set to take effect on Sunday, January 19. This marks the final day of President Joe Biden’s term in office. While Biden’s administration has indicated it will leave the enforcement of the ban to the incoming government, TikTok faces an uncertain future.

President-elect Donald Trump, who is scheduled to take office on Monday, has stated he is “most likely” to grant TikTok a 90-day extension. In response, TikTok CEO Shou Zi Chew posted a video thanking Trump for his support.

However, TikTok officials maintain that if the Biden administration does not provide clear assurances about the ban’s non-enforcement, they will be forced to suspend operations in the US by Sunday.

A crowded field of interest

While several buyers have expressed interest in acquiring TikTok, ByteDance has consistently stated its intention to retain ownership of the app. Recently, rumours about a possible acquisition by Elon Musk were dismissed by ByteDance as “pure fiction.”

Perplexity AI hopes its merger proposal can break through these barriers. By suggesting a partnership rather than an outright sale, Perplexity aims to meet US regulatory requirements while preserving ByteDance’s stake in the platform.

As the deadline approaches, all eyes remain on TikTok and its potential suitors. Whether Perplexity AI’s innovative proposal will be enough to secure the app’s future in the US remains to be seen.

Hot this week

OpenAI looked at Cursor before moving to buy Windsurf for US$3B

OpenAI tried to buy Cursor creator Anysphere before turning to Windsurf for US$3B, showing its urgency to lead AI code generation.

Enterprises accelerate adoption of AI agents despite concerns over data privacy and fairness

Cloudera survey finds 96% of global enterprises plan to expand AI agents, with Singapore leading adoption but facing fairness concerns.

PlayStation Plus prices rise worldwide, including Singapore

PlayStation Plus subscription prices have increased worldwide, including Singapore, with changes affecting new and existing users.

ChatGPT joins forces with The Washington Post in new content partnership

OpenAI partners with The Washington Post to bring trusted news summaries to ChatGPT, offering better access to reliable information.

GenAI investment could unlock ‘co-working’ future in financial services, says Moody’s

Moody’s sees GenAI transforming finance with AI co-workers, helping firms grow, automate decisions, and lower access barriers.

POCO launches entry-level C71 smartphone in Singapore with premium features

POCO launches the budget-friendly C71 smartphone in Singapore, offering premium design, enhanced cameras, and smooth performance at S$109.

NVIDIA uses AI to address climate, wildlife and disaster risks

NVIDIA’s AI tools support climate action, wildlife monitoring, and disaster risk mitigation, with uses spanning sea, land, sky and space.

Netflix raises subscription prices in Singapore again

Netflix again raises subscription prices in Singapore, with new rates for all plans and extra member slots.

GameMax unveils Blade Concept ATX case with bold design and powerful features

GameMax launches the Blade Concept ATX case, which features a striking blade design, RGB lighting, and support for high-end liquid-cooled PC builds.

Related Articles

Popular Categories