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AI startup Perplexity confirms interest to buy TikTok

Emma Reilly by Emma Reilly
March 21, 2025
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Perplexity says its vision for buying TikTok includes putting its artificial intelligence search tools to work letting users check the veracity of videos they are watching. ©AFP

San Francisco (AFP) – Artificial intelligence (AI) startup Perplexity on Friday expressed its interest in buying TikTok, which faces a deadline to divest from its Chinese owner or be banned in the United States. Perplexity, in a blog post, laid out a vision for integrating its AI-powered internet search capabilities with the popular video-snippet sharing app.

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“Combining Perplexity’s answer engine with TikTok’s extensive video library would allow us to build the best search experience in the world,” the San Francisco-based firm reasoned. “Perplexity is singularly positioned to rebuild the TikTok algorithm without creating a monopoly, combining world-class technical capabilities with Little Tech independence.”

President Donald Trump earlier this month said the United States was in talks with four groups interested in acquiring TikTok, with the Chinese-owned app facing an uncertain future in the country. A US law has ordered TikTok to divest from its Chinese owner ByteDance or be banned in the United States. “We’re dealing with four different groups. And a lot of people want it, and it’s up to me,” Trump said aboard Air Force One. “All four are good,” he added, without naming them.

The law banning TikTok took effect on January 19 over concerns that the Chinese government could exploit the video-sharing platform to spy on Americans or covertly influence US public opinion. During his first stint in the White House, Trump similarly attempted to ban TikTok in the United States on national security concerns. TikTok temporarily shut down in the United States and disappeared from app stores as the deadline for the law approached, to the dismay of millions of users.

Trump suspended its implementation for two-and-a-half months after beginning his second term in January, seeking a solution with Beijing. TikTok subsequently restored service in the United States and returned to the Apple and Google app stores in February. Although TikTok does not appear overly motivated regarding the sale of the app, potential buyers include an initiative called “The People’s Bid for TikTok,” launched by real estate and sports tycoon Frank McCourt’s Project Liberty initiative.

Others in the running are Microsoft, Oracle, and a group that includes Internet personality MrBeast, whose real name is Jimmy Donaldson. “Any acquisition by a consortium of investors could in effect keep ByteDance in control of the algorithm, while any acquisition by a competitor would likely create a monopoly in the short form video and information space,” Perplexity contended in the post. “All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists.”

Perplexity said it would build infrastructure for TikTok at datacenters in the United States and maintain it with US oversight. The AI startup also proposed rebuilding TikTok’s winning algorithm “from the ground up,” making the app’s “For You” recommendation feed open-source. Perplexity also vowed to enable TikTok users to cross-reference information as they watch videos to check their veracity.

© 2024 AFP

Tags: acquisitionAITikTok
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