AI Startup Perplexity Expresses Interest in Acquiring TikTok

Perplexity, an artificial intelligence (AI) startup, expressed interest in acquiring TikTok, which faces a deadline to divest from its Chinese owner or be banned in the United States.

In a blog post, Perplexity described how it plans to integrate its AI-powered internet search capabilities with the popular video-snippet sharing app.

"Combining Perplexity's answer engine with TikTok's extensive video library would allow us to build the best search experience in the world," said the San Francisco-based company.

"Perplexity is singularly positioned to rebuild the TikTok algorithm without creating a monopoly, combining world-class technical capabilities with Little Tech independence."

President Donald Trump announced earlier this month that the United States was in talks with four groups interested in acquiring TikTok, with the Chinese-owned app facing an uncertain future in the country.

TikTok has been ordered by a US law to divest from its Chinese owner, ByteDance, or face being banned in the US.

"We're dealing with four separate groups. "And a lot of people want it, and it's up to me," Trump said from Air Force One.

"All four are good," he said, not naming them.

The TikTok ban went into effect on January 19, amid concerns that the Chinese government could use the video-sharing platform to spy on Americans or covertly influence US public opinion.

During his first term in office, Trump attempted to ban TikTok in the United States, citing national security concerns.

TikTok was temporarily shut down in the United States and removed from app stores as the deadline for the law approached, much to the dismay of millions of users.

Trump put it on hold for two and a half months after starting his second term in January, hoping to reach an agreement with Beijing.

TikTok eventually resumed service in the United States and returned to the Apple and Google app stores in February.

Although TikTok does not appear to be overly motivated to sell the app, potential buyers include "The People's Bid for TikTok," which was launched by real estate and sports tycoon Frank McCourt's Project Liberty initiative.

Others in the running include Microsoft, Oracle, and a group led by Internet personality MrBeast, real name Jimmy Donaldson.

"Any acquisition by a consortium of investors could in effect keep ByteDance in control of the algorithm, while any acquisition by a competitor would likely create a monopoly in the short form video and information space," Perplexity wrote in the comments section.

"All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists."

Perplexity stated that it would build TikTok infrastructure in datacenters in the United States and maintain it under US oversight.

The AI startup also proposed rebuilding TikTok's successful algorithm "from the ground up" and making the app's "For You" recommendation feed open source.

Perplexity also vowed to allow TikTok users to cross-reference information as they watch videos to ensure its veracity.