Perplexity AI has reportedly submitted an 11th-hour bid to save TikTok in the US

Just before TikTok's expected shutdown in the US, Perplexity AI has proposed a merger with ByteDance, TikTok's parent company, to keep the app operational, according to CNBC. The proposed merger would combine Perplexity, TikTok US, and New Capital Partners into a new entity, allowing ByteDance's investors to retain their stakes and adding more video content to Perplexity. This proposal follows a Supreme Court ruling requiring ByteDance to sell TikTok or face a US ban. Perplexity, which offers an AI-powered search engine and faces copyright infringement lawsuits, believes a merger might be more appealing to ByteDance than a sale.

If ByteDance accepts the proposal, the company might receive a 90-day extension from Trump to finalize the deal. However, there is no indication ByteDance will pursue this option. TikTok has stated it will shut down on January 19 unless the Biden Administration provides assurances against enforcement of the law. The outgoing administration has deferred the issue to the incoming Trump administration. White House Press Secretary Karine Jean-Pierre dismissed TikTok's shutdown claim as a "stunt," emphasizing that any actions regarding the law will be handled by the next administration.

Key takeaways:

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Perplexity AI has proposed a merger with ByteDance to keep TikTok operating in the US, combining Perplexity, TikTok US, and New Capital Partners.
The Supreme Court ruled that ByteDance must sell TikTok or face a US ban, but ByteDance has resisted selling.
If ByteDance accepts the merger proposal, there might be a 90-day extension to finalize the deal, as indicated by Trump.
TikTok plans to shut down on January 19 unless the Biden Administration provides assurance against enforcement, while the current administration leaves the issue to the incoming Trump team.

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Perplexity AI has reportedly submitted an 11th-hour bid to save TikTok in the US

Key takeaways:

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