Perplexity AI has presented an updated proposal with TikTok’s parent company, ByteDance, aiming to create a new entity called “NewCo” allowing the U.S. government to own up to 50% of the new company.
The merger would allow ByteDance to remain in control of TikTok’s core recommendation algorithm while permitting “NewCo” to have “full U.S. board control.”
Funding for the proposed merger would come from third-party capital providers.
Perplexity AI, a U.S-owned search engine, is currently worth $9 billion. The company’s offer to TikTok competes with other major AI companies such as Microsoft, Oracle, and Elon Musk.
President Donald Trump said he expects a final decision regarding the future of TikTok to made within 30 days. He stated, “Numerous people are talking to me. Very substantial people…. We have a lot of interest in it, and the United States will be a big beneficiary. … I’d only do it if the United States benefits.”
By CEO NA Editorial Staff
