A US search engine startup, Perplexity AI, has reportedly submitted a proposal to merge with TikTok US, the Chinese-owned platform’s parent company ByteDance. According to a report in Reuters, a source familiar with the matter, US search engine startup Perplexity AI submitted a bid to TikTok’s Chinese parent ByteDance for Perplexity to merge with TikTok US. For those unaware, Aravind Srinivas is the CEO and co-founder of Perplexity AI. He co-founded the company in 2022 with Andy Konwinski, Denis Yarats, and Johnny Ho.
Srinivas was in India recently and met PM Narendra Modi. Last week, Perplexity AI announced plans to expand the company’s operations in India, inviting applications for a strategic role. In a LinkedIn post, Srinivas detailed that the role would involve growing the company’s presence in India, requiring candidates who are “willing to travel and meet with strategic partners and institutions.” He described the position as “fun and intense” and aligned with the company’s scrappy startup culture.
What Perplexity AI’s proposal to Tiktok is
Under Perplexity AI’s proposal, TikTok US would merge with Perplexity, forming a new entity in partnership with New Capital Partners, according to the source, who requested anonymity. The arrangement would allow ByteDance’s existing investors to retain equity stakes while enhancing Perplexity’s video capabilities.
Perplexity AI believes its proposal has a strong chance of success, emphasizing that it involves a merger rather than an outright sale. The company is known for its advanced search tools, powered by large language models like OpenAI’s GPT and Meta Platforms’ Llama, which deliver fast, sourced answers to user queries.
TikTok back from brink in the US
TikTok, a platform that has over 170 million users in the US had warned last week that it would go dark on January 19 unless the Biden administration assured companies like Apple and Google they wouldn’t face enforcement actions for hosting TikTok. TikTok faced a potential US ban beginning January 19 unless it severs ties with ByteDance. However, President-elect Donald Trump announced on January 18 that he would likely grant the short-video platform a 90-day reprieve starting Monday. On Sunday, TikTok began restoring service in the US after Trump stated he would issue an executive order to delay the federal ban.
The reversal occurred just hours after major app stores removed TikTok, rendering it inoperative for US users. TikTok confirmed on X (formerly Twitter) that it was working with service providers to reinstate access. Trump posted on Truth Social January 19 morning that he would issue an executive order on January 20 to delay the enforcement of the ban, providing more time for a deal to address national security concerns.
TikTok update to users in the US
After President-elect Donald Trump’s post, TikTok stated that it was working with tech companies and service providers to restore access. The platform thanked Trump for his plan to extend the deadline, allowing ByteDance additional time to secure a US-approved buyer.
While some users reported that TikTok was operational again, the app reportedly remained unavailable for download on Apple’s App Store. The company’s website also appeared to be partially functional for certain users, although it was unclear if services had been fully restored.
