Perplexity AI has submitted an up to date proposal to merge with TikTok that will enable the U.S. authorities to take a 50 p.c stake within the newly shaped firm, a supply acquainted confirmed to The Hill.
The startup, which runs a man-made intelligence (AI) powered search engine, proposed a merger between Perplexity and TikTok earlier this month as the favored video-sharing platform confronted a ban.
After a quick shutdown, TikTok got here again on-line following assurances from President Trump that he wouldn’t implement a regulation that required the app’s China-based father or mother firm ByteDance to divest by Jan. 19 or face a ban. Trump signed an govt order final week halting enforcement for 75 days.
Perplexity revised its proposal primarily based on suggestions from the Trump administration, the supply informed The Hill. Trump has repeatedly stated in current days that he envisions a deal through which the U.S. has a 50 p.c stake in TikTok.
The AI startup’s proposal would enable the U.S. authorities to take as much as a 50 p.c stake within the newly merged firm after it goes public. Nevertheless, the federal government wouldn’t have voting energy or a seat on the board.
Notably, the proposal doesn’t embody TikTok’s algorithm.
Whereas the Chinese language authorities has not too long ago confirmed elevated willingness to strike a deal on TikTok, the destiny of the algorithm has remained an open query, given Beijing’s restrictions on the export of such know-how.
After beforehand saying it will “firmly oppose” the pressured sale of TikTok, a spokesperson with the Chinese language Overseas Ministry stated earlier this month that personal firms could make impartial choices in regards to the “operation and acquisition of business.”
With each Trump and China indicating better openness to a deal, potential consumers are lining up. Former Los Angeles Dodgers proprietor Frank McCourt has lengthy been making ready a bid for TikTok. Joined by “Shark Tank” investor Kevin O’Leary, they made an official provide shortly earlier than the ban was set to take impact.
A gaggle of buyers led by Jesse Tinsley, founder and CEO of employer.com, additionally introduced a suggestion to purchase TikTok final week. Trump, for his half, threw Oracle founder Larry Ellison into the combo Tuesday, and NPR reported over the weekend that the White Home was in talks with the software program agency.
The president additionally stated he was not against his shut ally and Tesla CEO Elon Musk shopping for the corporate. Chinese language officers have thought of Musk as a possible purchaser, The Wall Road Journal reported earlier this month.
