Recently, U.S. technology companies have faced severe challenges, especially the U.S. ban on TikTok. Faced with this situation, the American search engine startup Perplexity AI proposed a bold merger plan, planning to merge itself with the US version of TikTok to cope with possible bans and market competition. The proposal of this plan not only involves the future of the two companies, but also reflects the complexity and uncertainty of the current U.S. technology regulatory environment.
Recently, American search engine startup Perplexity AI submitted a merger proposal to TikTok’s parent company ByteDance, planning to merge Perplexity and the US version of TikTok into a new entity. According to people familiar with the matter, this proposal is particularly important in the face of the upcoming U.S. ban.
It is understood that TikTok is facing a ban from the US government, which is expected to take effect this Sunday unless it can sever its relationship with ByteDance. However, newly elected President Donald Trump said he may give TikTok a 90-day grace period on Monday so that it can continue to operate. This makes TikTok’s future full of uncertainty.
Perplexity AI's proposed merger is intended to create a new entity through a combination with New Capital Partners. The move will allow most existing ByteDance investors to retain their stakes. People familiar with the matter said that the combined structure will further enhance Perplexity's short video content and enrich its product features.
Perplexity AI is a search tool based on large language models that allows users to quickly get answers to their questions, with sources and citations. This technology not only comes from OpenAI, but also includes the open source model Llama of the Meta platform. Through the merger with TikTok, Perplexity hopes to leverage TikTok's extensive influence in the US market to further expand its user base.
As a short-video social platform with nearly half of U.S. users, TikTok has profoundly impacted online culture and the development of small businesses. TikTok executives have said that TikTok will cease operations in the United States on Sunday if it cannot get a commitment from the Biden administration to protect related companies such as Apple and Google. This situation makes Perplexity AI's proposal even more urgent.
TikTok has not yet responded to the proposal, and New Capital Partners could not be reached in time. Perplexity AI is confident that its merger proposal may be easier to win as a merger rather than a sale. As the situation develops, the outcome of future negotiations remains full of suspense.
Highlights:
Perplexity AI has made a proposal to ByteDance to merge the US version of TikTok in response to the impending ban.
⏳ TikTok faces a ban from the US government, and President Trump may give it a 90-day grace period.
The merger plan will allow most ByteDance investors to retain equity and introduce more short-form video content to Perplexity.
The merger proposal between Perplexity AI and TikTok is currently in a state of uncertainty, and its final outcome will depend on the multi-party game and the final decision of the US government. This incident also shows us the complex geopolitical and regulatory risks faced by technology companies in the context of globalization.