San francisco-based artificial intelligence startup, Perplexity, has announced its intention to purchase TikTok. The company has been given an ultimatum to divest from its Chinese owners ByteDance or risk being banned in the United States. The company mentioned in a blog post how it intends to integrate its AI-powered search terminology to the platform’s algorithm to make the video sharing app open source.
The company mentioned that adding Perplexity’s “answer engine” to TikTok’s library of short video clips would produce “the best search experience in the world.” It claimed it is “singularly positioned to rebuild the TikTok algorithm without creating a monopoly,” citing its technical prowess and independence. TikTok has been surrounded by national security concerns in the US, with a law effective from January 19 ordering it to separate from ByteDance.
Perplexity leads numerous bidders for TikTok
President Donald Trump said in March that four groups are considering a purchase. “We’re dealing with four different groups. A lot of people want it, and it’s up to me. All four are good,” he said. He did not disclose specific bidders, though Microsoft, Oracle, Perplexity, and a consortium tied to influencers have been mentioned.
In his first stint as president, Donald Trump tried to outlaw TikTok on similar grounds, causing the app to shut down briefly in the United States and vanish from app stores. He suspended the ban for 2 1⁄2 months from January, searching for a solution with Beijing. TikTok resumed US service in February and reappeared in app stores, restoring access for millions. Potential buyers for the app include Microsoft, Oracle, a group involving MrBeast, “The People’s Bid for TikTok” from real estate magnate Frank McCourt’s Project Liberty. However, it still appears that TikTok is still not motivated to sell.
Perplexity mentioned that a successful purchase of the platform will keep its algorithm from the control of a single party. “Any acquisition by a consortium could keep ByteDance in control, while a competitor’s buy would likely create a monopoly in the short-form video and information space,” the firm wrote. “All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists.”
The platform proposes hosting Tiktok’s data at US data centers under domestic oversight. It also mentioned that it will rebuild the “For You” feed, making its underlying code accessible. By allowing users to cross-reference claims in videos, the company aims to foster more informed viewing and reduce misinformation.