Perplexity AI presents a bid to merge with TikTok

With a TikTok ban looming in the US, Perplexity AI is the latest bidder hoping to give the video app a new corporate home.

CNBC first informed about the interest of Perplexity. A source with knowledge of the bid confirmed to TechCrunch that Perplexity (whose CEO Aravind Srinivas is pictured above) has submitted a bid to merge with TikTok US.

The source also confirmed other details about the offer – which will create a new entity combining Perplexity, TikTok US, and new equity partners; that the majority of investors in TikTok’s parent company ByteDance will be able to retain their equity; and that by merging, Perplexity hopes to bring more video to its AI search engine.

A law requiring ByteDance to sell TikTok or face a ban in the United States will come into effect on Sunday, January 19. It will be President Joe Biden’s last day in office, and his administration officials have said that will leave the current implementation of the ban “to the next Administration”.

Meanwhile, President-elect Donald Trump, who will be inaugurated on Monday, said he would “Probably” gives TikTok a 90-day extensionand the CEO of TikTok posted a video thanking Trump for his efforts.

However, TikTok said that without more explicit assurances of non-enforcement from the Biden administration, will be “forced to darken” Sunday.

Despite a number of buyers expressing interest in TikTok, ByteDance has repeatedly said it has no intention of selling. (The company described a report that the Chinese government is open to a purchase by Elon Musk as “pure fiction.”) CNBC reports that Perplexity is hoping to overcome these reservations by proposing a merger instead of a sale.

TechCrunch has contacted TikTok and Perplexity AI for comment.