AI startup Perplexity announced on Friday its intention to acquire TikTok, which is under pressure to separate from its Chinese parent company or risk being banned in the U.S. In a blog post, Perplexity detailed its plan to merge its AI-driven internet search technology with the widely-used video-sharing platform.
“Combining Perplexity’s answer engine with TikTok’s extensive video library would allow us to build the best search experience in the world,” the San Francisco-based firm reasoned.
“Perplexity is singularly positioned to rebuild the TikTok algorithm without creating a monopoly, combining world-class technical capabilities with Little Tech independence.”
Earlier this month, President Donald Trump announced that the United States is in discussions with four parties interested in purchasing TikTok, as the Chinese-owned app’s future in the country remains uncertain. A US law mandates that TikTok must separate from its Chinese parent company, ByteDance, or face a ban in the United States.
“We’re dealing with four different groups. And a lot of people want it, and it’s up to me,” Trump said aboard Air Force One.
“All four are good,” he added, without naming them.
The law prohibiting TikTok came into effect on January 19 due to fears that the Chinese government might use the platform to spy on Americans or subtly sway public opinion in the U.S. During his first term, Trump also tried to ban TikTok in the U.S. citing national security issues. As the law’s deadline neared, TikTok temporarily ceased operations in the U.S. and was removed from app stores, disappointing millions of users.
After Trump began his second term in January, he paused the ban for two and a half months while seeking a resolution with Beijing. TikTok then resumed its services in the U.S. and reappeared in the Apple and Google app stores in February. While TikTok seems indifferent about selling the app, potential buyers include “The People’s Bid for TikTok,” an initiative led by Frank McCourt’s Project Liberty. Other contenders include Microsoft, Oracle, and a group featuring internet star MrBeast, whose real name is Jimmy Donaldson.
“Any acquisition by a consortium of investors could in effect keep ByteDance in control of the algorithm, while any acquisition by a competitor would likely create a monopoly in the short form video and information space,” Perplexity contended in the post.
“All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists.”
Perplexity announced plans to develop infrastructure for TikTok at data centers located in the United States, ensuring it operates under American supervision. The AI startup also suggested a complete overhaul of TikTok’s successful algorithm, aiming to make the app’s “For You” recommendation feed open-source.
Additionally, Perplexity committed to allowing TikTok users to verify information while watching videos, enhancing the accuracy of the content they consume.
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