With a TikTok ban looming in the US, Perplexity AI is the latest bidder hoping to give the video app a new home.
CNBC first reported on Perplexity's interest. A source familiar with the proposal confirmed to TechCrunch that Perplexity (CEO Aravind Srinivas, pictured above) has made a bid to merge with TikTok US.
The official also confirmed other details about the bid. The idea was to create a new entity combining Perplexity, TikTok US, and a new equity partner. Most investors in TikTok's parent company ByteDance will be able to keep their shares. And with the merger, Perplexity hopes to bring more videos to its AI search engine.
A law requiring ByteDance to sell TikTok or ban it in the United States is scheduled to go into effect on Sunday, January 19th. That day will be President Joe Biden's last day in office, but administration officials said they intend to leave the actual TikTok alone. The ban will be implemented “until the next administration.”
Meanwhile, President-elect Donald Trump, who takes office on Monday, said he will likely give TikTok a 90-day extension, and TikTok's CEO posted a video thanking Trump for his efforts.
But TikTok said it would be “forced to go dark” on Sunday without clearer assurances from the Biden administration that it would not be enforced.
Despite many buyers expressing interest in TikTok, ByteDance has repeatedly said it has no intention of selling. (The company described reports that the Chinese government is open to a takeover by Elon Musk as “complete fiction.”) CNBC reports that Perplexity hopes to overcome these reservations by proposing a merger rather than a sale. He said he hopes it will be possible.
TechCrunch has reached out to TikTok and Perplexity AI for comment.