Perplexity AI has submitted a bid to merge with TikTok's US operations, according to a report first released by CNBC. This proposed merger aims to create a new entity that would blend Perplexity, TikTok US, and new equity partners. The initiative is driven by Perplexity's ambition to integrate more video content into its artificial intelligence search engine. The deal comes at a critical time, as a law necessitating ByteDance, TikTok’s parent company, to sell or face a US ban looms, set to take effect on January 19.
The Biden administration has announced that the implementation of this law will be left to the subsequent administration. President-elect Donald Trump has indicated that he would "most likely" grant TikTok a 90-day extension. Despite the ongoing legal and political wrangling, TikTok's CEO expressed gratitude to Trump through a video message for his efforts regarding the issue.
ByteDance has consistently stated that it has no intention of selling TikTok. However, reports suggest that the Chinese government might be open to an acquisition by Elon Musk, though ByteDance has dismissed these claims as "pure fiction." Investors in ByteDance could maintain their equity under Perplexity's proposed merger, offering some reassurance amidst the uncertainty.
Aravind Srinivas, CEO of Perplexity AI and based in New York City, spearheads the merger proposal. He envisions leveraging TikTok's extensive video platform to enhance Perplexity's AI capabilities. If successful, the merger could position Perplexity as a formidable player in the tech industry by combining social media prowess with cutting-edge AI technology.
The situation remains fluid as TikTok faces the prospect of being "forced to go dark" this Sunday unless there are explicit assurances of non-enforcement from the Biden administration. TechCrunch has reached out to both TikTok and Perplexity AI for further comments on the matter.
Leave a Reply