On January 18, AI startup Perplexity AI said it intended to acquire TikTok U.S. The firm sent ByteDance a proposal to combine Perplexity, TikTok U.S. and new equity partners into a single legal entity, CNBC reported, citing sources.
The new company would allow most existing ByteDance investors to retain a stake and would bring more video into Perplexity’s AI offerings, the channel reported.
Perplexity AI is a search‑focused artificial‑intelligence startup that competes with OpenAI and Google.
On January 17, the Supreme Court upheld a law requiring the forced sale of TikTok by China’s ByteDance or a ban on the app in the United States. President Joe Biden had earlier signed the measure. Authorities fear national‑security risks stemming from the social network’s data‑collection practices and its links to China.
On January 18, TikTok issued a statement warning of a possible shutdown of the service on the 19th for 170 million Americans due to actions by the Biden administration. Creators with million‑strong audiences began posting farewell videos for their followers.
Later Apple and Google removed the social network from app stores. The situation was resolved by U.S. president‑elect Donald Trump, who had earlier asked the Supreme Court to suspend implementation of the law and give his administration “the opportunity to achieve a political solution to the issues.”
“The Supreme Court’s ruling was expected, and everyone must respect it. My decision on TikTok will be made in the near future, but I must have time to analyze the situation. Stay tuned!”, — wrote the politician on his social network.
TikTok CEO Shou Zi Chew thanked Trump for his willingness to cooperate and to seek a solution that would allow the app to continue operating in the United States.
On January 19, the U.S. president‑elect said he intended to sign an order on Inauguration Day to delay the federal ban on the social network. The same day, TikTok said it was restoring access in the country.
STATEMENT FROM TIKTOK:
In agreement with our service providers, TikTok is in the process of restoring service. We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170…
— TikTok Policy (@TikTokPolicy) January 19, 2025
“We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing more than 7 million small businesses to thrive,” the company stressed.
Earlier, ByteDance said it did not plan to sell TikTok. That is why Perplexity AI has a chance to strike a deal, since it is a merger, CNBC noted.
According to the channel, the fair valuation of the social network “significantly exceeds $50 billion”.
In June, TikTok announced the introduction of generative AI avatars of content creators and actors for use in advertising and brand promotion.