Perplexity AI, a US-based search engine startup, has put forth a proposal to merge with TikTok’s American operations, a source familiar with the situation informed Reuters on Saturday. The proposal has been submitted to TikTok’s parent company, ByteDance.
Starting Sunday, TikTok risks facing a ban in the US if it fails to sever its connections with ByteDance. However, President-elect Donald Trump indicated on Saturday that he would likely consider granting the social media platform a 90-day extension on Monday.
CNBC was the first to report on this bid.
The merger, if accepted, would establish a new entity by integrating Perplexity with TikTok US and aligning with New Capital Partners, as per the source’s statements.
This new organizational framework would allow many of ByteDance’s current investors to keep their equity stakes while also enhancing Perplexity’s video content capabilities, the source noted, requesting anonymity due to the sensitivity of the information.
As of now, TikTok has not issued a response to requests for comments regarding the merger proposal, and attempts to reach New Capital Partners were unsuccessful.
Perplexity AI is optimistic about the potential success of its bid, emphasizing that it is framed as a merger instead of a direct sale.
Specializing in providing users with rapid answers backed by sources and citations, Perplexity AI employs large language models for generating and summarizing information, drawing from platforms including OpenAI and Meta’s open-source model Llama.
TikTok has become a significant cultural force in the US, engaging nearly 50% of Americans, supporting small businesses, and influencing online culture. However, the company announced on Friday that it would cease operations in the US on Sunday unless assurances were provided by President Joe Biden’s administration to companies like Apple and Google regarding enforcement actions should a ban be implemented.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
