Perplexity AI offers to merge with TikTok US

Perplexity AI officially made a play for TikTok on Saturday, submitting a proposal to parent company ByteDance to create a new combined entity combining Perplexity, TikTok USA and new equity partners, CNBC has learned.

The new structure will allow most of ByteDance’s existing investors to retain their equity stakes and bring more videos to Perplexity, according to a source familiar with the situation who asked to remain anonymous due to the confidential nature of the potential deal.

Confusion AI, the artificial intelligence A search engine startup that competes with OpenAI and GoogleIt started around 2024 500 million dollars was valued at and ended the year with the valuation about $9 billionAfter attracting growing investor interest amid the generative AI boom — as well controversy over plagiarism charges.

It has been rated as one of the most AI-powered searches by investors Google’s key risks as it potentially changes the way consumers access information online. Last year, OpenAI, which kicked off the generative AI craze with ChatGPT in late 2022, presented A search engine called SearchGPT. Google later has been activated “AI Insights” in search allows users to see a brief summary of the answers at the top of the results.

Although any potential transaction between Perplexity AI and ByteDance – and TikTok – would take months to complete said The app will ‘go dark’ in the US on Sunday unless the Biden administration is confident it won’t be punished appleGoogle and other service providers to host it — the president-elect Donald Trump told NBC News on Saturday After being sworn in on Monday, he will “most likely” give TikTok another 90 days to work out the deal.

“I want to thank President Trump for his commitment to working with us to find a solution that keeps TikTok available in the United States,” CEO Shou Zi Chew said in a video posted to TikTok on Friday.

ByteDance made it clear will not sell A source told CNBC that TikTok US, which is part of why Perplexity believes it has a chance with AI’s offering — is because the offering is more of a merger than a sale.

The source believes the fair price is “well north of $50 billion,” but the final figure added to the offer will be partly determined by which of ByteDance’s existing shareholders want to remain part of the new entity and which want to cash out. .

CORRECTION: Perplexity AI’s proposal for TikTok would create a new combined entity combining Perplexity, TikTok US and new equity partners. An earlier version of this article misstated one of the participants.