Perplexity AI Proposes Merger with TikTok US Amid Looming Ban

As the fate of TikTok in the United States hangs in the balance, Perplexity AI has emerged as a potential savior for the app’s American operations. The artificial intelligence company, led by CEO Aravind Srinivas, has reportedly submitted a proposal to merge with TikTok US and create a new corporate structure.

According to a source familiar with the matter, the proposal involves combining Perplexity AI, TikTok US, and new equity partners into a single entity. The plan also allows most investors in ByteDance, TikTok’s Chinese parent company, to retain their equity holdings. By merging with TikTok, Perplexity AI aims to integrate video content into its AI-powered search engine, potentially expanding its capabilities and audience reach.

The merger proposal comes at a critical moment. A U.S. law requiring ByteDance to either sell TikTok or face a nationwide ban is set to take effect on Sunday, January 19. This date marks the last day of President Joe Biden’s administration, which has indicated that the enforcement of the law will be left to the incoming government. Meanwhile, President-elect Donald Trump, set to be inaugurated on Monday, has suggested he may grant TikTok a 90-day extension. Despite this potential reprieve, TikTok stated that without explicit assurances from the Biden administration, it may be forced to suspend operations in the U.S.

While several parties have expressed interest in acquiring TikTok, ByteDance has consistently resisted the idea of selling. The company recently dismissed a report claiming the Chinese government was open to a potential acquisition by Elon Musk, calling it “pure fiction.” In contrast, Perplexity AI is positioning its merger proposal as an alternative to a sale, hoping to address ByteDance’s concerns while securing TikTok’s U.S. operations.

Both TikTok and Perplexity AI have been approached for comment, but no official statements have been released. As the deadline nears, the industry is watching closely to see whether this merger proposal could provide a path forward for TikTok in the United States.