AI Startup Perplexity Proposes Ambitious Plan to Acquire and Overhaul TikTok

AI Startup Perplexity Wants to Buy TikTok, Open Source the 'For You' Feed

As we move closer to an April 5 deadline for ByteDance to sell TikTok to a US company, AI startup Perplexity has once again thrown its hat into the ring as a potential buyer. "All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists," it says. Perplexity didn't announce where the funding would come from for the acquisition. The startup is looking to raise funding at an $18 billion valuation, Reuters reports, but TikTok's US operations have been valued at up to $50 billion by Bloomberg analysts. Nonetheless, Perplexity argued in a blog post that it is "singularly positioned to rebuild the TikTok algorithm without creating a monopoly." It also wants to open source the TikTok For You feed. Among its ideas is to extend Perplexity's citations to TikTok videos, "making it easy for users to cross-reference information in real time as they watch videos." The company also says "combining Perplexity's answer engine with TikTok's extensive video library would allow us to build the best search experience in the world, providing both TikTok and Perplexity users to the answers they seek, anywhere, anytime, no matter the medium." The AI startup has some deep-pocketed competition. A group led by Frank McCourt, the former owner of the Los Angeles Dodgers, has proposed plans to transition TikTok onto a blockchain, also in the name of liberating users' data. In January, it was reported that the Trump administration was working on a deal whereby Oracle and a group of investors would acquire the majority of the company, while TikTok's current owner, China-based ByteDance, would retain a minority share. Oracle would have responsibility for collecting data on US users and the app's algorithm, as well as software updates. Wyoming entrepreneur Reid Rasner also says he put in a bid at $47.45 billion. Perplexity, however, says an "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." X owner Elon Musk was at one point rumored to be interested in acquiring the company, though these rumors were strongly denied by both Musk and ByteDance. Perplexity made a similar bid for TikTok in January ahead of the original Jan. 19, 2025, divestiture deadline. When he took office, President Trump delayed that deadline for 75 days via executive order. Earlier this week, Vice President JD Vance expressed confidence about the chances of a deal being signed off in time for the deadline.

Perplexity AI says it would rebuild TikTok's algorithm and add Community Notes features

The company behind the AI search engine is making its pitch for "rebuilding TikTok in America." Earlier this year, with a TikTok ban looming, Perplexity AI threw its hat into the increasingly crowded ring to take over the embattled social media company. Now, the maker of the AI search engine is outlining for TikTok if its bid were to win out. In a blog post, the company made a lengthy pitch for "rebuilding TikTok in America," an effort that would see the AI company rebuild the app's signature algorithm, add Community Notes, and integrate the shortform videos into its search engine. Of the many potential buyers, it's not clear how seriously Perplexity's bid is being considered. On Friday, the Financial Times that ByteDance's existing US investors are "exploring a deal alongside software giant Oracle" in an effort to "appease" President Donald Trump. The story also notes that ByteDance "strongly prefers" this arrangement. Still, Perplexity is making the case that it is best suited to own the platform. The AI company also says it would rebuild TikTok's "black box" recommendation algorithm from scratch and would make the "For You" feed open source. Perplexity also suggests it would add "Community Notes features" as well as the citations used by its own search engine in an effort "to turn TikTok into the most neutral and trusted platform in the world." That would be a significant departure from TikTok's current fact-checking program, which relies on international media organizations. This is the first time Perplexity has publicly discussed its vision for TikTok in detail. It's also notable that some of its plans -- like open-sourcing the "For You" feed and adding Community Notes -- feel ripped straight from Elon Musk's playbook for X. In any case, the White House will likely need to make a decision about TikTok's future soon. Trump's executive order that temporarily saved the app from a ban is set to expire April 5, although the president has indicated he would "" extend it if necessary.

Perplexity still wants to buy TikTok, vows to rebuild algorithm and add community notes

In a nutshell: AI startup Perplexity is once again proposing the unlikely scenario that it takes over TikTok's US business operations. If the company were able to pull off this feat, it promises to make some major changes to the app, including rebuilding the algorithm, adding community notes, and open-sourcing the recommendation system. Perplexity first proposed a merger with TikTok's US operations in January. The plan would see the US government hold 50% ownership of the company but have no influence over TikTok's day-to-day operations and not be granted a seat on the merged entity's board. ByteDance has until April 5 to find a US buyer for TikTok's operations in the US, so Perplexity is once again putting forward a case for why it would be a good choice. The AI firm writes that it is singularly positioned to rebuild the TikTok algorithm without creating a monopoly, combining "world-class technical capabilities with Little Tech independence." It adds that any acquisition by a consortium of investors - such as the group that includes YouTube star MrBeast - could effectively keep ByteDance in control of the algorithm, while any acquisition by a competitor would likely create a monopoly in the short-form video space. Perplexity writes that "all of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists." Perplexity's pitch includes rebuilding TikTok's algorithm from the ground up in American data centers and with American oversight. It also wants to make the "For You" recommendation system transparent and open source. Another proposed change is the introduction of community notes, in which contributors can add context such as fact-checks under a post. The feature has proven so popular on former Twitter platform X that Meta CEO Mark Zuckerberg said he is introducing it to Facebook and Instagram. Perplexity writes that the community notes will sit alongside the citations feature used by its own search engine to "turn TikTok into the most neutral and trusted platform in the world." The rest of Perplexity's proposal includes upgrading TikTok's AI infrastructure using Nvidia Dynamo technology, enhancing the app's search feature with Perplexity's answer engine, and improve personalization for those who connect their Perplexity and TikTok accounts. Exactly where Perplexity would find the money to buy TikTok is unclear. It has been looking to raise funds at an $18 billion valuation, but TikTok's US operations have been valued at up to $50 billion. TikTok had until January 19, 2025 to find a US buyer or be banned in the US under legislation introduced in 2024. Donald Trump signed an executive order extending the deadline to April 5, 2025, when he took office, though the President has said he would "probably" extend it if necessary.

Perplexity AI Advocates for TikTok Takeover as Company Eyes $18 Billion Valuation - Decrypt

San Francisco-based AI developer Perplexity AI was again making the case for taking over TikTok's embattled social media platform amid reports that it had started talks to raise money at a potential $18 billion valuation. In a blog post published on Friday, Perplexity claimed it is the best choice for an American company to take over TikTok before a U.S. presidential order banning the Chinese company is expected to take effect on April 5. "Perplexity is singularly positioned to rebuild the TikTok algorithm without creating a monopoly, combining world-class technical capabilities with Little Tech independence," Perplexity AI wrote. Perplexity AI, launched in 2022, is an AI-powered search engine that delivers real-time, cited answers through a conversational interface. It combines large language models with live web data for accuracy and transparency. "We want to communicate clearly to the end user that we're not here to sell you another chatbot and alternative to ChatGPT," Perplexity co-founder and CEO Aravind Srinivas previously told Decrypt. "We're here to help find answers to any question, and that's why we call [Perplexity] an answer engine." On Jan. 20, President Donald Trump signed an executive order delaying for 75 days the enforcement of the Protecting Americans from Foreign Adversary Controlled Applications Act, which would effectively ban TikTok in the United States. This delay allowed time to assess national security concerns while preventing an abrupt shutdown of the platform used by millions of Americans, and providing an opportunity for an American buyer to take over TikTok. Perplexity joins a group of American companies -- including Oracle, Microsoft, and Walmart -- that have previously expressed interest in acquiring TikTok. Others eyeing a purchase of TikTok include consortiums headed by Frank McCourt, the former owner of the Los Angeles Dodgers, and Roblox CEO Jesse Tinsley. At one point, X owner Elon Musk was rumored to be interested in acquiring TikTok. "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. "All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists." While it makes its case for taking over TikTok, Perplexity AI is eyeing a new funding round after valuing the company at $18 billion, according to a report by Bloomberg. Citing persons familiar with the matter, Bloomberg reported that the funding round would range from $500 million to $1 billion. The valuation and news of the upcoming funding round come as Perplexity broadens its offerings beyond search to include AI-driven tools that help users find answers more efficiently. In February, Perplexity announced the waitlist for a new Comet browser that leverages AI agents for what the company called "Agentic Search." Using its AI, powered by Nvidia's new Dynamo platform, Perplexity said it could boost TikTok's recommendation system while improving transparency amid rising concerns over misinformation. "A TikTok rebuilt and powered by Perplexity would create the world's greatest platform for creativity and knowledge discovery," they said.

AI startup Perplexity confirms interest to buy TikTok

San Francisco (AFP) - Artificial intelligence (AI) startup Perplexity on Friday expressed its interest in buying TikTok, which faces a deadline to divest from its Chinese owner or be banned in the United States. Perplexity in a blog post laid out a vision for integrating 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," the San Francisco-based firm reasoned. "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 earlier this month said 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. A US law has ordered TikTok to divest from its Chinese owner ByteDance or be banned in the United States. "We're dealing with four different groups. And a lot of people want it, and it's up to me," Trump said aboard Air Force One. "All four are good," he added, without naming them. The law banning TikTok took effect on January 19 over concerns that the Chinese government could exploit the video-sharing platform to spy on Americans or covertly influence US public opinion. During his first stint in the White House, Trump similarly attempted to ban TikTok in the United States on national security concerns. TikTok temporarily shut down in the United States and disappeared from app stores as the deadline for the law approached, to the dismay of millions of users. Trump suspended its implementation for two-and-a-half months after beginning his second term in January, seeking a solution with Beijing. TikTok subsequently restored service in the United States and returned to the Apple and Google app stores in February. Although TikTok does not appear overly motivated regarding the sale of the app, potential buyers include an initiative called "The People's Bid for TikTok," launched by real estate and sports tycoon Frank McCourt's Project Liberty initiative. Others in the running are Microsoft, Oracle and a group that includes Internet personality MrBeast, whose real name is 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 contended in the post. "All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists." Perplexity said it would build infrastructure for TikTok at datacenters in the United States and maintain it with US oversight. The AI startup also proposed rebuilding TikTok's winning algorithm "from the ground up", making the app's "For You" recommendation feed open-source. Perplexity also vowed to enable TikTok users to cross-reference information as they watch videos to check their veracity.

Perplexity's wild bid to buy TikTok and rebuild it

Perplexity announced plans Friday to acquire TikTok's U.S. operations, proposing to rebuild its algorithm from scratch in American data centers and open-source the code -- a bold bid that faces skepticism given the startup's $18 billion valuation against TikTok's $30-50 billion price tag. The AI search company outlined seven key steps in its public proposal, claiming it could avoid monopolistic outcomes by operating independently of ByteDance. "Perplexity is singularly positioned to rebuild the TikTok algorithm without creating a monopoly, combining world-class technical capabilities with Little Tech independence," the company wrote. The bid arrives as TikTok's legal limbo intensifies. The Supreme Court greenlit a potential U.S. ban in January, causing a 14-hour app blackout. President Trump later delayed enforcement until April 5 via executive order. ByteDance has resisted selling TikTok's U.S. division despite pressure. Perplexity faces heavyweight rivals: Oracle, Microsoft, and a Frank McCourt-led investor group are all pursuing TikTok deals. The startup's credibility is further strained by its history of attention-grabbing moves, including a $2.5M Super Bowl ad mocking Google's AI errors, an attempted F1 sponsorship, and claims of hiring actor Jimmy O. Yang as "Chief Security Officer."

Perplexity AI makes pitch for TikTok purchase

Perplexity AI is making its pitch for TikTok, as the Trump administration's deadline to strike a deal and avert a ban on the popular video-sharing platform quickly approaches. The artificial intelligence (AI) search engine, which initially submitted a bid to merge with TikTok in January, argued Friday that it could create a new, more transparent algorithm and enhance the app with its AI and search capabilities. "A TikTok rebuilt and powered by Perplexity would create the world's greatest platform for creativity and knowledge discovery," the company wrote in a blog post. Perplexity said it would create an open-source recommendation system, with infrastructure developed and maintained in the U.S. Any TikTok sale would likely not include its proprietary algorithm. The search engine also argued that it is "singularly positioned" to rebuild TikTok's algorithm without creating a monopoly. "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. The argument hits on a point that President Trump repeatedly cited for his opposition to banning TikTok last year. During his 2024 campaign, he often pointed to a ban's potential to enrich another platform, such as Facebook. Perplexity also emphasized that it could extend its citation and search features to TikTok, while bringing TikTok videos to its search engine. "This integration would allow users to seamlessly transition between TikTok's scrolling experience and Perplexity's powerful research capabilities -- all within a single, unified feed," it added. Perplexity's pitch comes as it faces competition from several other potential buyers. Trump said earlier this month that his administration was in talks with four different groups about a potential deal. Larry Ellison's Oracle has reportedly become a leading contender, with the software company meeting with top aides on Capitol Hill this week, according to The New York Times. The Trump administration is facing a rapidly approaching deadline to strike a deal. Trump signed an executive order on his first day in office, halting enforcement of a TikTok ban for 75 days. The ban was set to go into effect Jan. 19, the day before Trump's inauguration, after large bipartisan majorities in Congress passed a law last April requiring TikTok's China-based parent company ByteDance to divest from the app or face a U.S. ban. Former President Biden signed the bill into law but ultimately opted not to enforce it in his final days in office. Trump further delayed enforcement until April 5. The president said earlier this month that he would "probably" extend the deadline again if a deal isn't reached in time. However, Commerce Secretary Howard Lutnick said last week that Trump wants to hammer out a deal under the current deadline, emphasizing the president "doesn't like to ask for extensions."

AI startup Perplexity confirms interest to buy TikTok

President Donald Trump earlier this month said 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. A US law has ordered TikTok to divest from its Chinese owner ByteDance or be banned in the United States.Artificial intelligence (AI) startup Perplexity on Friday expressed its interest in buying TikTok, which faces a deadline to divest from its Chinese owner or be banned in the United States. Perplexity in a blog post laid out a vision for integrating 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," the San Francisco-based firm reasoned. "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 earlier this month said 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. A US law has ordered TikTok to divest from its Chinese owner ByteDance or be banned in the United States. "We're dealing with four different groups. And a lot of people want it, and it's up to me," Trump said aboard Air Force One. "All four are good," he added, without naming them. The law banning TikTok took effect on January 19 over concerns that the Chinese government could exploit the video-sharing platform to spy on Americans or covertly influence US public opinion. During his first stint in the White House, Trump similarly attempted to ban TikTok in the United States on national security concerns. TikTok temporarily shut down in the United States and disappeared from app stores as the deadline for the law approached, to the dismay of millions of users. Trump suspended its implementation for two-and-a-half months after beginning his second term in January, seeking a solution with Beijing. TikTok subsequently restored service in the United States and returned to the Apple and Google app stores in February. Although TikTok does not appear overly motivated regarding the sale of the app, potential buyers include an initiative called "The People's Bid for TikTok," launched by real estate and sports tycoon Frank McCourt's Project Liberty initiative. Others in the running are Microsoft, Oracle and a group that includes Internet personality MrBeast, whose real name is 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 contended in the post. "All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists." Perplexity said it would build infrastructure for TikTok at datacenters in the United States and maintain it with US oversight. The AI startup also proposed rebuilding TikTok's winning algorithm "from the ground up", making the app's "For You" recommendation feed open-source. Perplexity also vowed to enable TikTok users to cross-reference information as they watch videos to check their veracity.

AI startup Perplexity confirms interest to buy TikTok

Artificial intelligence startup Perplexity on Friday expressed its interest in buying TikTok, which faces a deadline to divest from its Chinese owner or be banned in the United States. Perplexity in a blog post laid out a vision for integrating 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," the San Francisco-based firm reasoned.

AI startup Perplexity confirms interest to buy TikTok

SAN FRANCISCO (AFP) - Artificial intelligence (AI) startup Perplexity on Friday expressed its interest in buying TikTok, which faces a deadline to divest from its Chinese owner or be banned in the United States. Perplexity in a blog post laid out a vision for integrating 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," the San Francisco-based firm reasoned. "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 earlier this month said 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. A US law has ordered TikTok to divest from its Chinese owner ByteDance or be banned in the United States. "We're dealing with four different groups. And a lot of people want it, and it's up to me," Trump said aboard Air Force One. "All four are good," he added, without naming them. The law banning TikTok took effect on January 19 over concerns that the Chinese government could exploit the video-sharing platform to spy on Americans or covertly influence US public opinion. During his first stint in the White House, Trump similarly attempted to ban TikTok in the United States on national security concerns. TikTok temporarily shut down in the United States and disappeared from app stores as the deadline for the law approached, to the dismay of millions of users. Trump suspended its implementation for two-and-a-half months after beginning his second term in January, seeking a solution with Beijing. TikTok subsequently restored service in the United States and returned to the Apple and Google app stores in February. Although TikTok does not appear overly motivated regarding the sale of the app, potential buyers include an initiative called "The People's Bid for TikTok," launched by real estate and sports tycoon Frank McCourt's Project Liberty initiative. Others in the running are Microsoft, Oracle and a group that includes Internet personality MrBeast, whose real name is 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 contended in the post. "All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists." Perplexity said it would build infrastructure for TikTok at datacenters in the United States and maintain it with US oversight. The AI startup also proposed rebuilding TikTok's winning algorithm "from the ground up", making the app's "For You" recommendation feed open-source. Perplexity also vowed to enable TikTok users to cross-reference information as they watch videos to check their veracity.