Perplexity AI bids to merge with TikTok US, supply says

(Reuters) -U.S. search engine startup Perplexity AI submitted a bid on Saturday to TikTok’s Chinese language dad or mum ByteDance for Perplexity to merge with TikTok U.S., a supply conversant in the corporate’s plans advised Reuters.

TikTok faces a U.S. ban beginning on Sunday if it doesn’t minimize ties with ByteDance, though President-elect Donald Trump mentioned on Saturday he would doubtless give the short-video social-media platform a 90-day reprieve on Monday.

CNBC first reported the supply.

Perplexity would merge with TikTok U.S. and create a brand new entity by combining the merged firm with New Capital Companions (WA:CPAP), the particular person mentioned.

The brand new construction proposed by Perplexity would permit for many of ByteDance’s present traders to retain their fairness stakes and would deliver extra video to Perplexity, the supply mentioned, requesting anonymity as a result of the matter is confidential.

TikTok didn’t instantly reply to requests for remark. New Capital Companions couldn’t be instantly reached.

Perplexity AI believes its bid might succeed because the proposal is a merger reasonably than a sale, the particular person mentioned.

Perplexity AI’s search instruments allow customers to get quick solutions to questions, with sources and citations. It’s powered by giant language fashions that may sum up and generate data, from OpenAI to Meta Platforms (NASDAQ:META)’ open-source mannequin Llama.

TikTok, which has captivated almost half of all Individuals, powered small companies and formed on-line tradition, mentioned on Friday it is going to go darkish within the U.S. on Sunday except President Joe Biden’s administration supplies assurances to corporations reminiscent of Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOGL) that they won’t face enforcement actions when a ban takes impact.