With a TikTok ban looming within the United States, Perplexity AI is the newest bidder hoping to present the video app a brand new company residence.
CNBC first reported on Perplexity’s curiosity. A supply with data of the supply confirmed to TechCrunch that Perplexity (whose CEO Aravind Srinivas is pictured above) has submitted a bid to merge with TikTok US.
The supply additionally confirmed different particulars concerning the bid — that it might create a brand new entity combining Perplexity, TikTok US, and new fairness companions; that almost all buyers in TikTok’s mother or father firm ByteDance would be capable of retain their fairness; and that by merging, Perplexity hopes to convey extra video to its AI search engine.
A legislation requiring ByteDance to both promote TikTok or see it banned within the US is about to take impact on Sunday, January 19. That will likely be President Joe Biden’s final day in workplace, and officers from his administration have stated that it’s going to depart the precise implementation of the ban “to the following Administration.”
Meanwhile, President-elect Donald Trump, who will likely be inaugurated on Monday, stated he would “more than likely” give TikTok a 90-day extension, and TikTok’s CEO posted a video thanking Trump for his efforts.
However, TikTok stated that with out extra specific assurances of non-enforcement from the Biden administration, it will likely be “pressured to go darkish” on Sunday.
Despite quite a few consumers expressing curiosity in TikTok, ByteDance has stated repeatedly that it doesn’t intend to promote. (The firm described a report that the Chinese authorities is open to an acquisition by Elon Musk as “pure fiction.”) CNBC reviews that Perplexity is hoping it could possibly overcome these reservations by proposing a merger quite than a sale.
TechCrunch has reached out to TikTok and Perplexity AI for remark.
