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Artificial intelligence (AI) startup Perplexity has confirmed its interest in acquiring TikTok, the popular video-sharing app that faces a looming deadline to divest from its Chinese parent company, ByteDance, or risk being banned in the United States.
AI-Powered TikTok: A New Vision
In a blog post on Friday, the San Francisco-based company outlined its vision for integrating its AI-powered search technology with TikTok’s vast video library. Perplexity believes this combination could create an unparalleled search experience while also addressing concerns about misinformation on the platform.
“Combining Perplexity’s answer engine with TikTok’s extensive video library would allow us to build the best search experience in the world,” the company stated in its post.
Perplexity emphasized that it is uniquely positioned to revamp TikTok’s algorithm without monopolizing the short-form video space. “Perplexity is singularly positioned to rebuild the TikTok algorithm without creating a monopoly, combining world-class technical capabilities with Little Tech independence,” the startup added.
TikTok With Uncertain Future in the U.S.
TikTok’s fate in the U.S. remains uncertain after the passage of a law requiring its divestiture from ByteDance. The legislation, which took effect on January 19, stems from concerns that the Chinese government could potentially exploit the platform to spy on American users or covertly influence public opinion.
Former President Donald Trump, who previously attempted to ban TikTok during his first term in office, recently revealed that four groups are interested in acquiring the app. However, he did not disclose their identities.
“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 any specific bidders.
TikTok had temporarily shut down in the U.S. and was removed from app stores in anticipation of the law’s deadline. However, after Trump suspended its implementation for two and a half months upon returning to office in January, the app resumed operations and returned to Apple and Google’s app stores in February.
Competing Bidders and Market Dynamics
While TikTok has shown little urgency in pursuing a sale, several entities have expressed interest in acquiring the platform. Among them is “The People’s Bid for TikTok,” a consortium spearheaded by real estate and sports magnate Frank McCourt’s Project Liberty initiative. Other potential buyers include tech giants Microsoft and Oracle, as well as a group that includes popular internet personality Jimmy Donaldson, better known as MrBeast.
Perplexity voiced concerns about potential deals that could allow ByteDance to retain control of TikTok’s algorithm. “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,” the company wrote.
Commitment to Transparency and U.S. Oversight
Perplexity’s proposal includes significant infrastructure changes to TikTok, such as moving its data centers to the United States and ensuring oversight by U.S. authorities. The startup also pledged to completely rebuild TikTok’s recommendation algorithm, making the “For You” feed open-source to enhance transparency.
Additionally, Perplexity aims to integrate its AI search tools into TikTok, enabling users to cross-reference information in real time while watching videos. This feature, the company argues, would help combat misinformation and ensure that content consumption is more fact-based.
“All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists,” the blog post stated.
