Artificial intelligence startup Perplexity AI, founded by Indian-origin Aravind Srinivas, has proposed a new plan to TikTok's parent company, ByteDance. The latest bid is to create an entirely new entity that merges with Perplexity with TikTok's US operations. The US government could own up to 50% stake in this newly formed entity after it goes public, potentially valuing the company at $300 billion, according to a source familiar with the proposal.
Notably, this plan was submitted last week and builds upon a previously submitted plan on January 18, just before the TikTok ban went into effect. A lot has happened with TikTok recently. After its brief ban on January 19, TikTok came back online after President Donald Trump signed an executive order to save TikTok, providing more time for the company to find a solution. Meanwhile, TikTok users started learning Mandarin and millions of TikTok refugees fled to another Chinese social media app, RedNote. TikTok is still not available on Apple App Store or Google Play Store.
It was also reported that the world's richest person, Elon Musk, is in line to purchase TikTok, but the rumors were refuted by TikTok itself. Now, Perplexity AI has put forward a proposal to which, ByteDance hasn't yet responded. Under the new plan, the US government's share would have no voting rights or board seats. ByteDance would continue to have its ties with TikTok but without access to its proprietary algorithm, which is crucial for the app's content recommendations.
This approach aims to satisfy US laws requiring TikTok to reduce Chinese ownership. Former Treasury Secretary Steven Mnuchin has supported similar ideas, emphasizing the need to disconnect TikTok’s technology from China. He added that disconnecting TikTok from China is important since "there’s absolutely no way that China would ever let us have something like that in China."
Interest in TikTok remains high, with multiple investors reportedly ready to purchase the social media giant. President Donald Trump has also stated that a deal is likely expected within 30 days. There were reports that Oracle, along with some other investors were considering taking over TikTok's global operations.
Source: Associated Press
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