Perplexity Says It Wants to Buy TikTok

Published:March 24, 2025

Reading Time: 3 minutes

In a surprising twist, Perplexity, the AI-powered search startup, says it wants to buy TikTok and shake up how the app works from the inside out.

They’re not just aiming to own the platform. Their plan? Rebuild TikTok’s algorithm from the ground up, host everything in the U.S., and open-source the technology so it’s fully transparent.

Let’s unpack what this means and whether it’s even possible.

Why Perplexity Thinks It’s the Right Fit

According to Perplexity, they believe they’re in a unique position to run TikTok without turning it into a monopoly. That’s a bold claim, especially when tech giants like Microsoft and Oracle are also reportedly eyeing the platform.

Here’s what Perplexity promises if they get to take the reins:

  • Rebuild the recommendation algorithm in the U.S., using American data centers and oversight
  • Make the algorithm open source, allowing anyone to inspect and understand how it works
  • Boost TikTok’s AI infrastructure, powered by Nvidia’s Dynamo technology
  • Add citation-style features to videos, similar to how Perplexity shows sources in its search results
  • Let users connect their Perplexity and TikTok accounts, for even better personalization
  • Add automatic translation, so videos can be viewed in multiple languages

Basically, Perplexity wants to give TikTok a makeover—from a mysterious “black box” to a transparent, AI-powered experience.

So… What’s Really Going On With TikTok in the U.S.?

Let’s rewind a bit. TikTok has been in hot water for a while now over privacy concerns and its ties to China-based parent company, ByteDance.

Earlier this year, the U.S. Supreme Court gave the green light for a potential ban of TikTok. That sparked chaos. The app briefly went offline for over 14 hours, leaving creators and users confused.

Then came a temporary pause, thanks to an executive order by President Trump, delaying the ban until April 5. That deadline is quickly approaching, and the future of TikTok in the U.S. is still up in the air.

The Competition Is Fierce

Perplexity isn’t the only one interested in TikTok’s U.S. operations. Tech giants like Oracle, Microsoft, and even an investor group led by billionaire Frank McCourt are also reportedly making bids.

But there’s a big question mark: Is TikTok even seriously considering Perplexity’s offer?

Experts estimate TikTok’s U.S. business could be worth anywhere between $30 billion to $50 billion. Meanwhile, Perplexity is reportedly valued at around $18 billion and still raising more funds. That’s a big gap.

Is This Another Perplexity Stunt?

Let’s be real – Perplexity has a bit of a reputation for making flashy moves to grab headlines.

Just a few examples:

  • They ran a pricey ad featuring Squid Game actor Lee Jung-jae, poking fun at Google’s AI mistakes
  • Tried to sponsor an F1 racing team with a $5 million yearly deal
  • Even jokingly “hired” actor Jimmy O. Yang (yes, from Silicon Valley) as their Chief Security Officer

With all that in mind, it’s fair to ask: Is this TikTok bid the real deal or just a PR play?

Could Perplexity Actually Change How TikTok Works?

If this deal did go through, it could totally change how TikTok works.

Imagine being able to:

  • See exactly how videos are recommended to you
  • Check where content comes from using built-in citations
  • Watch videos in your own language, no matter the original

That would be a major shift from the current system, where the algorithm feels like a mystery to most users.

But rebuilding a massive platform like TikTok isn’t easy. And with tech giants in the race, Perplexity will have to prove they’re more than just talk.

What’s Next?

With the April 5 deadline looming, TikTok’s future in the U.S. is uncertain. If a sale happens, it could reshape social media in major ways.

Perplexity’s vision is bold, maybe even idealistic. But whether they have the resources, and real intention, to follow through is still a question.

For now, all eyes are on what ByteDance and U.S. lawmakers decide in the coming weeks.

Quick Recap: What Perplexity Wants to Do With TikTok

FeatureWhat It Means for Users
Open-source algorithmTransparency in how content is recommended
U.S.-based serversMore control and compliance with U.S. data laws
AI upgrades with Nvidia DynamoBetter, faster, smarter performance
Video citationsSee sources or facts behind video content
Account linkingSmarter, more tailored content delivery
Multilingual supportVideos translated automatically across many languages

In paper, Perplexity’s plan sounds like a win for users who want transparency and smarter content. But with so many big names in the running, and the clock ticking, it remains to be seen if they’ll even get a seat at the table.

Still, if nothing else, Perplexity is making sure people don’t forget their name. And in today’s tech world, that’s half the battle.

Onome

Contributor & AI Expert