Perplexity AI Revised Bid to Merge TikTok Amidst the U.S-TikTok Saga

Perplexity AI, a fast-growing AI search engine, has submitted a revised bid to merge with TikTok. The proposal includes giving the U.S. government up to 50% ownership of the newly formed entity. 

This potential merger comes amid ongoing tensions between the U.S. government and TikTok’s Chinese parent company, ByteDance.  At its core, the deal isn’t just about ownership. It’s about the future of AI, data security, and the ever-growing rivalry between the United States and China in tech innovation.

What’s New in the Revised Bid?

In its previous proposal, Perplexity suggested creating a new company by merging TikTok’s U.S. operations, Perplexity AI, and additional equity investors. The updated version sweetens the deal for Washington. Here are the key changes:

• Government Ownership: The U.S. government would receive up to 50% ownership after an IPO worth at least $300 million.
• ByteDance Retains a Stake: ByteDance, TikTok’s Chinese owner, could still maintain partial ownership.
• Addressing Security Concerns: The revised bid directly responds to concerns raised by the Trump administration regarding data privacy and national security.

TikTok’s Rollercoaster Weekend

The urgency of the merger talks was underscored last weekend when TikTok briefly went offline. The downtime resulted from a looming U.S. law that required ByteDance to sell TikTok or face a nationwide ban.

The app returned to normal operations after President Donald Trump extended the sale deadline. Trump also hinted at wanting the U.S. to secure 50% ownership of TikTok, though it remains unclear if he meant the government or private investors.

Also read: Trump Ends Biden’s AI Rules

How Does Oracle Fit Into This?

Adding another twist to the saga, recent reports suggest that the White House has been negotiating with Oracle. As the tech company currently provides infrastructure for TikTok’s U.S. operations, Oracle could play a key role in the app’s future.

However, Trump’s public comments created more questions than answers. When asked about Oracle’s involvement, he stated, “I’ve spoken to many people about TikTok but not with Oracle.”

Why This Deal Matters for You

At first glance, this might seem like just another corporate merger. But it’s so much more. Here’s why:

• Data Security: TikTok’s popularity lies in its personalized content recommendations, but this relies on massive amounts of user data. Merging with Perplexity could enhance AI capabilities while addressing privacy concerns.
• Geopolitics: The deal is a balancing act between appeasing U.S. regulators and maintaining TikTok’s global appeal.
• User Experience: If the merger goes through, TikTok users may notice little change in the app itself, but behind the scenes, it could become a blueprint for resolving tech disputes between countries.

What Happens Next?

The proposed merger isn’t a done deal yet. The U.S. government will review the bid and decide if it aligns with national security interests. Meanwhile, Oracle’s involvement adds another layer of complexity.

Whether Perplexity’s revised offer will gain approval remains to be seen. For now, the fate of TikTok in the United States hangs in the balance, reflecting larger questions about who controls the tech we use every day.

Also read: Donald Trump Launches $500B Venture to Make U.S No. 1 in AI