The firm has sent ByteDance a proposal to merge Perplexity, TikTok U.S. and new equity partners into a single legal entity, CNBC has learned from sources.
The new firm would allow most of ByteDance's existing investors to retain a stake in the company and bring more video into Perplexity's AI solutions, the channel said.
Perplexity AI is an artificial intelligence-based search-focused startup that competes with OpenAI and Google.
On January 17, the Supreme Court upheld a law requiring the forced sale of TikTok by Chinese company ByteDance or banning the app in the US. Earlier, the document was signed by President Joe Biden. Authorities fear national security concerns over the social network's data collection practices and its ties to China.
On January 18, TikTok released a statement in which it warned of a possible shutdown of the service on the 19th for 170 million Americans because of the Biden administration's actions. Bloggers with an audience of millions began posting farewell videos for their subscribers.
Later, Apple and Google removed the social network from the app stores. The situation was corrected by US President-elect Donald Trump, who earlier asked the Supreme Court to suspend the implementation of the law and give his administration “an opportunity to achieve a political solution to the issues.”
"The Supreme Court decision was expected, and everyone must respect it. My decision on TikTok will be made in the not too distant future, but I must have time to review the situation. Stay tuned!" - Trump stated
TikTok CEO Shaw Zee Chu thanked Trump for his willingness to cooperate and find a solution to keep the app operating in the United States.
On January 19, the U.S. president-elect announced his intention to sign an executive order on inauguration day to delay the federal ban of the social network. On the same day, TikTok reported the restoration of access in the country.
"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 for providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive," the company emphasized.
ByteDance has previously stated that it has no plans to sell TikTok. That's why Perplexity AI has a chance to close the deal, as it is about a merger, CNBC noted.
According to the channel, the fair valuation of the social network “significantly exceeds $50 billion”.
In June, TikTok announced the appearance of generative AI avatars of content creators and actors for use in advertising and brand promotion.
