Perplexity AI has submitted a revised proposal to merge with TikTok, in an association that might give the U.S. authorities as much as 50 % possession of the brand new entity.
The Associated Press first reported on the brand new proposal. A supply with information of the bid confirmed to TechCrunch that the AP’s reporting is correct.
The AI search engine had beforehand proposed creating a brand new firm by combining Perplexity, TikTok US, and extra fairness traders. Under the brand new bid, the federal government would obtain its stake after an preliminary public providing of at the very least $300 million, whereas TikTok’s present Chinese proprietor ByteDance might additionally retain possession, based on the AP.
Perplexity reportedly revised its bid based mostly on suggestions from President Donald Trump’s administration.
TikTok briefly went down final weekend attributable to a regulation forcing ByteDance to promote the app or see it banned within the United States. It sprang again to life after Trump mentioned he would signal an government order extending the sale deadline. He additionally mentioned he’d wish to see the U.S. obtain “50% possession,” though it wasn’t clear whether or not he meant the federal government or U.S. traders.
Another report this week advised that the White House was negotiating a deal that might see Oracle (which already supplies the infrastructure for TikTok’s U.S. visitors) take over; when requested, Trump mentioned he’s spoken to “many individuals about TikTok” however “not with Oracle.”
