Perplexity submits a new bid for TikTok

Perplexity AI has submitted a revised proposal to merge with TikTok in an arrangement that would give the U.S. government up to 50% ownership of the new entity.

The Associated Press first reported on the new proposal. A source with knowledge of the bid confirmed to TechCrunch that the AP’s reporting is accurate.

The AI search engine had previously proposed creating a new company by combining Perplexity, TikTok US, and additional equity investors. Under the new bid, the government would receive its stake after an initial public offering of at least $300 billion, while TikTok’s current Chinese owner ByteDance could also retain ownership, according to the AP.

Perplexity reportedly revised its bid based on feedback from President Donald Trump’s administration.

TikTok briefly went down last weekend due to a law forcing ByteDance to sell the app or see it banned in the United States. It sprang back to life after Trump said he would sign an executive order extending the sale deadline. He also said he’d like to see the U.S. receive “50% ownership,” although it wasn’t clear whether he meant the government or U.S. investors.

Another report this week suggested that the White House was negotiating a deal that would see Oracle (which already provides the infrastructure for TikTok’s U.S. traffic) take over; when asked, Trump said he’s spoken to “many people about TikTok” but “not with Oracle.”