Perplexity AI has submitted a revised proposal to merge with TikTok, in an arrangement that would give the US government ownership of up to 50 percent of the new entity.
Associated Press The new proposal was first reported. A source familiar with the show confirmed to TechCrunch that the AP’s reporting is accurate.
The artificial intelligence search engine had previously proposed creating a new company through a merger Confusionand TikTok US and additional equity investors. Under the new offer, the government would take its stake after an IPO worth at least $300 million, while ByteDance, TikTok’s current Chinese owner, could also retain ownership, according to the AP.
Perplexity reportedly revised its offer based on comments from President Donald Trump’s administration.
TikTok was briefly shut down last weekend due to a law forcing ByteDance to sell the app or ban it in the United States. Life came back to life after Trump said he would sign an executive order extending the deadline for the sale. He also said he would like to see the United States get “50% ownership,” although it was not clear whether he meant the government or American investors.
Another report this week indicated that the White House was negotiating a deal that would see Oracle (which already provides the infrastructure for TikTok traffic in the US) take over; When asked, Trump said He has spoken to “a lot of people around TikTok” but “not with Oracle.”
