AI Startup Perplexity Proposes TikTok Acquisition Plan

News Desk

Islamabad: Artificial intelligence (AI) startup Perplexity expressed interest in acquiring TikTok on Friday, as the popular video-sharing app faces a deadline to either divest from its Chinese parent company, ByteDance, or face a potential ban in the United States.

In a blog post, Perplexity shared its vision of integrating its AI-powered search technology with TikTok’s vast video library, aiming to create the best search experience in the world. “By combining Perplexity’s answer engine with TikTok’s extensive video library, we could redefine the search experience,” the San Francisco-based company stated.

The startup argued that it is uniquely positioned to rebuild TikTok’s algorithm without creating a monopoly, emphasizing its world-class technical expertise and its commitment to maintaining “Little Tech independence.”

Earlier this month, former President Donald Trump stated that the U.S. was in discussions with four groups interested in acquiring TikTok, which is facing an uncertain future in the country due to concerns about its Chinese ownership. A U.S. law mandates that TikTok must sever ties with ByteDance or risk being banned.

“We’re dealing with four different groups. A lot of people want it, and it’s up to me,” Trump said aboard Air Force One, adding that all four groups are “good,” without revealing their identities.

The law, which took effect on January 19, was driven by fears that the Chinese government could use TikTok to spy on Americans or manipulate public opinion in the U.S. During his first term in office, Trump also attempted to ban TikTok over similar national security concerns.

As the law’s deadline neared, TikTok briefly shut down its services in the U.S. and was removed from app stores, disappointing millions of users. However, after Trump suspended the ban for two-and-a-half months following his second-term inauguration in January, TikTok resumed service and returned to the Apple and Google app stores in February.

Although TikTok seems somewhat hesitant about selling the app, potential buyers include “The People’s Bid for TikTok,” an initiative spearheaded by real estate and sports mogul Frank McCourt’s Project Liberty, as well as Microsoft, Oracle, and a consortium involving internet personality MrBeast (Jimmy Donaldson).

Perplexity argued that if a consortium of investors were to acquire TikTok, ByteDance could retain control of the algorithm, while an acquisition by a competitor might lead to a short-form video monopoly.

“Society benefits when content feeds are freed from the influence of foreign governments and monopolistic global entities,” Perplexity contended.

The AI company further proposed to build data centers in the U.S. for TikTok’s infrastructure and manage it under U.S. oversight. Additionally, Perplexity suggested rebuilding TikTok’s algorithm from scratch and making its “For You” recommendation feed open-source. The startup also promised to allow TikTok users to cross-check the information presented in videos for accuracy.