Perplexity AI Suggests a $300 Billion Strategy for TikTok
ByteDance, the parent company of TikTok, has received a revised proposal from Perplexity AI that calls for the formation of a new firm that would combine Perplexity with TikTok's US operations. The US government would be able to own up to 50% of the organisation under this new structure, according to an AP investigation. According to the source, the revised proposal, which was filed last week, expands upon a previous one that was given to ByteDance on January 18, the day before the US law that banned TikTok went into force.
The initial plan included a structure for combining Perplexity, a San Francisco-based company, with TikTok's US operations and obtaining more capital from investors. The plan provides ByteDance with a compromise that permits it to keep some ties to TikTok without completely cutting them off. ByteDance would have to cede control to a board that is entirely based in the US, though.
According to the updated plan, upon an initial public offering (IPO) of at least $300 billion, the US government might purchase up to half of the new company's shares. According to media reports, the US government would not be granted a seat on the company's board or have voting rights over these government-owned shares.
Crucially, the deal states that the US business that ByteDance provided would not include TikTok's secret technology, which forms the basis of the app's content recommendation engine.
Trump Supporting Musk to Crack TikTok Deal
In the past, US President Donald Trump has spoken out in favour of Tesla CEO Elon Musk purchasing TikTok, proposing an innovative deal whereby the US government would control 50% of the company in return for operating licenses.
At a press briefing on January 21, Trump responded, "I would be, if he wanted to buy it, yes," in response to a question regarding Musk's potential interest in the platform. Additionally, he named Larry Ellison, the chairman of Oracle, adding, "I'd like Larry to buy it, too."
TikTok Restores Services in USA
Following U.S. President Donald Trump's announcement last week that he would restore TikTok's access in the nation if he regained power, the app's services were resumed. Due to a law citing national security, TikTok blocked its app for users in the United States.
President Donald Trump stated on 25th January that he was in discussions with several parties about purchasing TikTok and that he would probably make a decision regarding the future of the well-known app within the next 30 days.
Growth of Perplexity AI
Over the previous 12 months, Perplexity AI has grown significantly. The company was valued at approximately $500 million at the beginning of 2024. By year's end, the figure had risen to $9 billion. This expansion was greatly aided by the generative AI boom, as more investors recognised the potential of AI search tools as a significant threat to Google. Nevertheless, Perplexity hasn't had an easy time. The business has occasionally been in the news for the wrong reasons due to criticism it has received for alleged plagiarism.
Nitin Konde
