With a TikTok ban in the US looming, Perplexity AI is the latest bidder hoping to give the video app a new corporate home.
CNBC first Perplexity interest has been reported. Perplexity (whose CEO Aravind Srinivas is pictured above) has made an offer to merge with TikTok US, a source familiar with the bid confirmed to TechCrunch.
The source also confirmed other details about the offer – that it will create a new entity combining Perplexity, TikTok US and new equity partners; That most investors in ByteDance, TikTok’s parent company, will be able to keep their shares; Through the integration, Perplexity hopes to bring more videos to its AI search engine.
The law requiring ByteDance to either sell or ban TikTok in the United States is set to take effect on Sunday, January 19. This will be President Joe Biden’s last day in office, and officials from his administration have said that he will leave the actual implementation of the ban “to the next administration.”
Meanwhile, President-elect Donald Trump, who will be inaugurated on Monday, has said he will “Most likely” gives TikTok a 90-day extensionThe TikTok CEO posted a video thanking Trump for his efforts.
However, TikTok said that without more explicit non-enforcement guarantees from the Biden administration, it “will be forced to go dark” on Sunday.
Although a number of buyers have expressed interest in TikTok, ByteDance has repeatedly said it has no intention of selling. (The company described a report that the Chinese government was open to an Elon Musk takeover as “pure fantasy.”) CNBC reported that Perplexity hopes it can overcome these reservations by proposing a merger rather than a sale.
TechCrunch has reached out to TikTok and Perplexity AI for comment.