SAN FRANCISCO, United States—Perplexity, an AI search startup, has announced its interest in acquiring TikTok, the popular video-sharing platform currently under scrutiny by the U.S. government due to national security concerns over its Chinese ownership.
In a recent blog post, Perplexity outlined plans to integrate its AI-driven search capabilities with TikTok, aiming to enhance user engagement and address privacy issues.
TikTok, owned by China’s ByteDance, has faced increasing pressure from the U.S. to divest its U.S. operations or risk a ban.
The U.S. government is concerned about data privacy and potential national security risks associated with the app’s Chinese ties. In response, ByteDance is exploring various options, including selling TikTok’s U.S. operations.
Perplexity’s proposal includes open-sourcing TikTok’s algorithm to promote transparency and rebuilding the platform without monopolistic influence.
However, ByteDance has been hesitant to sell its U.S. operations, especially after the Supreme Court ruled that the U.S. could ban the app, leading to a temporary downtime.
Competing bidders for TikTok’s U.S. operations include Oracle, Microsoft, and a consortium led by Frank McCourt.
China has expressed strong opposition to a forced sale of TikTok, stating that such a move would harm investor confidence in the United States.
A spokesperson for China’s Ministry of Commerce emphasized that a sale would “seriously damage investors from multiple countries, including China,” and harm “confidence to invest in the United States.”
