Perplexity AI Makes Bold Move to Merge with TikTok Amid Ban Rumors

As fears of a TikTok ban rise in the United States, Perplexity AI has stepped into the spotlight as a serious contender to offer the app a new corporate future. In a groundbreaking bid, the AI-driven search engine aims to merge with TikTok's US operations, potentially reshaping the landscape of social media and artificial intelligence.

According to CNBC, which first broke the news, Perplexity AI's CEO, Aravind Srinivas, is leading the charge. A source familiar with the transaction disclosed to TechCrunch that this proposed merger would result in the formation of a new entity that includes Perplexity, TikTok US, and additional equity partners. Notably, most investors from TikTok's parent company, ByteDance, would have the opportunity to retain their stakes in the company, alleviating concerns about total divestment.

With a law mandating ByteDance to either sell TikTok or face a full ban in the US set to take effect on January 19, tensions are high. This deadline coincides with President Joe Biden's final day in office, paving the way for the incoming administration to take charge of the situation. President-elect Donald Trump has indicated he may grant TikTok a 90-day extension, while TikTok's CEO has publicly thanked Trump for his potential support.

However, TikTok has warned that without clearer assurances from the Biden administration regarding enforcement, it might be forced to "go dark," heightening the urgency around the merger talks.

Interestingly, despite significant interest from various buyers, ByteDance has consistently resisted selling TikTok outright. The company even dismissed rumors about potential acquisition discussions with Elon Musk as "pure fiction." Perplexity AI is now attempting to circumvent these roadblocks by proposing a merge instead of a straightforward sale, showcasing its ambition to integrate more video content into its AI search engine, which could revolutionize how users interact with both platforms.

As the situation unfolds, all eyes are on TikTok and Perplexity AI. Will this merger succeed, or will TikTok's fate ultimately lie in the balances of a political game? One thing is certain: the social media landscape as we know it could be on the brink of tremendous change—stay tuned for updates!