Perplexity AI on Friday said it has made a bid to acquire TikTok and vowed to turn the popular video app — owned by Beijing-based ByteDance — the “most most neutral and trusted platform in the world.”
Terms of Perplexity’s offer were not disclosed. The San Francisco-based artificial intelligence startup argued it is “singularly positioned” to rebuild TikTok’s algorithm because it combines “world-class” technical capabilities with “Little Tech” independence.
“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 said in a blog post. “All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists.”
Perplexity’s bid comes as TikTok is fast approaching the deadline on the 75-day extension President Trump gave ByteDance to sell its American operation; President Trump’s extension, which he signed on his first day back in office, is set to expire on Ap. 5.
The app was set to be banned after then-President Joe Biden signed a law last year, saying ByteDance had to offload its U.S. business; the chief concern among lawmakers was that the app doubled as a spyware app for China’s communist government. President Trump said earlier this month the U.S. government is talking to four potential buyers, with Oracle appearing to be the frontrunner to run TikTok in the U.S.
Critics have been concerned such a deal may lead to TikTok’s algorithm remaining in the hands of both ByteDance and China’s government; ByteDance is required by Chinese law to share user data with the government, if asked to.
Perplexity acknowledged that concern in its Friday blog post, saying its new TikTok “infrastructure would be developed and maintained in American data centers with American oversight, ensuring alignment with domestic privacy standards and regulations.”
The bid announcement comes just a day after Reuters reported the San Francisco-based artificial intelligence startup was in talks to raise funds at an $18 billion valuation. That raises questions about how much Perplexity could realistically bid for TikTok’s U.S. business, considering some analysts have said the full operation is worth $300 billion. With a little more than two weeks to go before TikTok’s extension concludes, it will be worth watching if a deal is ultimately struck.
