TikTok US Merger Proposed by Perplexity AI to Avoid Potential Ban

In a strategic move to avert a ban, Perplexity AI, a search engine startup, has merged its US operations with TikTok’s American division. This offer was presented to ByteDance, TikTok’s Chinese parent company, on Saturday.

Without ending its partnership with ByteDance, the widely used short-video platform TikTok, which has millions of users in the US, faces the possibility of being blocked. On Monday, the Biden administration may decide to extend the platform’s deadline by 90 days, allowing them additional time to resolve issues.

The report states that Perplexity AI has proposed a merger with TikTok US and New Capital Partners, an investment firm, in order to create a new company. Perplexity would have access to TikTok’s extensive video content library, and ByteDance’s present investors would be able to hold on to their shares under this deal.

One of Perplexity AI’s most distinctive features is its sophisticated search engine, which returns verified results in a flash. The platform is built to streamline information access and is powered by OpenAI and Meta AI models. The combination could improve TikTok’s discovery and search capabilities with the help of Perplexity’s technologies.

On the other hand, TikTok stated on Friday that it will shut down in the US on Sunday unless the government guarantees that tech companies like Google and Apple will not face fines.

With the merger’s approval, Perplexity AI would solidify its place in the tech world while TikTok’s US businesses would be saved. The partnership has the potential to enhance services and add new features for users of both platforms.