(Reuters) – U.S. search engine startup Perplexity AI submitted a bid on Saturday to TikTok’s Chinese language dad or mum ByteDance for Perplexity to merge with TikTok U.S., a supply accustomed to the corporate’s plans advised Reuters.
TikTok faces a U.S. ban beginning on Sunday if it doesn’t reduce ties with ByteDance, though President-elect Donald Trump stated on Saturday he would possible give the short-video social-media platform a 90-day reprieve on Monday.
CNBC first reported the provide.
Perplexity would merge with TikTok U.S. and create a brand new entity by combining the merged firm with different companions, the individual stated.
The brand new construction proposed by Perplexity would enable for many of ByteDance’s current traders to retain their fairness stakes and would convey extra video to Perplexity, the supply stated, requesting anonymity as a result of the matter is confidential.
TikTok didn’t instantly reply to requests for remark.
Perplexity AI believes its bid could succeed because the proposal is a merger moderately than a sale, the individual stated.
Perplexity AI’s search instruments allow customers to get quick solutions to questions, with sources and citations. It’s powered by massive language fashions that may sum up and generate data, from OpenAI to Meta Platforms (NASDAQ:)’ open-source mannequin Llama.
TikTok, which has captivated practically half of all People, powered small companies and formed on-line tradition, stated on Friday it would go darkish within the U.S. on Sunday except President Joe Biden’s administration supplies assurances to corporations akin to Apple (NASDAQ:) and Google (NASDAQ:) that they won’t face enforcement actions when a ban takes impact.
(This story has been corrected to take away the reference to New Capital Companions (WA:), which isn’t concerned within the provide, from the supply’s assertion in paragraph 4)