US-based search engine startup Perplexity AI has submitted a bid to merge with TikTok US, a source familiar with the company’s plans revealed to Reuters on Saturday. The move comes as TikTok faces a potential ban in the US unless it severs ties with its Chinese parent company ByteDance. President-elect Joe Biden has hinted at a 90-day reprieve for the popular social media platform.
Perplexity AI aims to create a new entity by merging with TikTok US and combining with New Capital Partners. This proposed structure would allow ByteDance’s existing investors to retain their equity stakes while integrating more video capabilities into Perplexity AI’s offerings. The bid is seen as a merger rather than a sale, which the source believes increases the likelihood of success.
Perplexity AI’s search tools are designed to provide users with quick answers to questions, supported by large language models like OpenAI and Meta Platforms’ open-source model Llama. Meanwhile, TikTok has warned that it may go dark in the US on Sunday unless reassurances are provided to key technology companies such as Apple and Google to avoid enforcement actions under a potential ban.
As the situation unfolds, Perplexity AI’s bid to merge with TikTok US represents a strategic move in the face of uncertain regulatory challenges. The potential partnership could bring together technology and content capabilities to navigate the changing landscape of social media platforms.
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