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Perplexity AI made a formal bid for TikTok on Saturday, submitting an offer to its parent company, ByteDance, to create a new combined entity combining Perplexity, TikTok US and new capital partners, CNBC has learned.
The new structure will allow most of ByteDance's existing investors to retain their equity stakes and will bring more video to Perplexity, according to a source familiar with the situation, who requested anonymity due to the confidential nature of the potential deal.
Confusion Amnesty International, artificial intelligence The search engine startup competes with OpenAI and Googlestarting approximately 2024 500 million dollars Evaluation and ended the year with an evaluation About 9 billion dollarsafter attracting increasing interest from investors amid the artificial intelligence boom – as well Controversy over plagiarism accusations.
Investors view AI-assisted search as one of… Google The main risk is that it will potentially change the way consumers access information online. Last year, OpenAI, which started the generative AI craze in late 2022 using ChatGPT, foot A search engine called SearchGPT. Google it later Fired “AI Overviews” in search, allowing users to see a quick summary of answers at the top of results.
Although any potential transaction between Perplexity AI and ByteDance would likely take months to complete — and TikTok He said The app will go “dark” in the US on Sunday unless the Biden administration confirms it will not be penalized appleAnd Google and other providers to host it – the president-elect Donald Trump He told NBC News on Saturday He “most likely” will give TikTok an additional 90 days to reach a deal after he is sworn in on Monday.
In a video posted on TikTok on Friday, CEO Shou Zi Chew said: “I want to thank President Trump for his commitment to working with us to find a solution that keeps TikTok available in the United States.”
ByteDance has publicly indicated this Won't sell TikTok US, which is part of the reason Perplexity AI believes it has a shot at its bid — since the proposal is a merger, not a sale, the source told CNBC.
The source believes a fair price is “well above $50 billion” but the final figure attached to the proposal will be determined, in part, by which of ByteDance's existing shareholders want to remain part of the new entity and which want to cash out.
Correction: Perplexity AI's bid for TikTok will create a new combined entity that brings together Perplexity, TikTok US, and new capital partners. A previous version of this article misstated one participant.
