Perplexity AI Proposes Merger with TikTok U.S. to Avert Ban
Perplexity AI has approached ByteDance, TikTok's Chinese parent company, seeking a merger between TikTok U.S., Perplexity AI, and New Capital Partners. This move aims to create a new entity and prevent a looming U.S. ban on TikTok.
According to CNBC, the proposed merger would allow ByteDance investors to maintain their stakes while enhancing Perplexity AI's video capabilities. A source familiar with the situation confirmed the details.
Perplexity AI's search technology swiftly provides answers to queries, incorporating citations from sources such as OpenAI and Meta's Llama model.
TikTok, with its massive reach in the U.S., has played a crucial role in fueling small businesses and shaping cultural trends. However, it faces a ban on Sunday if it fails to sever ties with ByteDance.
Perplexity AI believes its merger proposal has a higher chance of success due to its nature as a merger rather than a sale. The company has not yet responded to requests for comment.