Recently, the American search engine startup Perplexity AI proposed a merger with ByteDance, the parent company of TikTok, aiming to combine Perplexity with the U.S. version of TikTok into a new entity. According to sources, this proposal is particularly significant in light of the impending U.S. ban.

It is reported that TikTok is facing a government ban in the U.S., expected to take effect this Sunday, unless it can sever ties with ByteDance. However, newly elected President Donald Trump has indicated that he might grant TikTok a 90-day grace period on Monday to allow it to continue operations. This leaves TikTok's future uncertain.

The merger plan from Perplexity AI aims to create a new entity through a combination with New Capital Partners. This move would allow most existing investors of ByteDance to retain their stakes. Sources indicate that the structure of this merger will further enhance Perplexity's short video content, enriching its product offerings.

Perplexity AI is a search tool based on large language models, allowing users to quickly obtain answers to questions, complete with sources and citations. This technology not only comes from OpenAI but also includes the open-source model Llama from Meta platforms. Through the merger with TikTok, Perplexity hopes to leverage TikTok's extensive influence in the U.S. market to further expand its user base.

TikTok, as a short video social platform with nearly half of U.S. users, has profoundly impacted online culture and the development of small businesses. TikTok executives have stated that if they cannot secure protection commitments from the Biden administration for related companies (like Apple and Google), TikTok will cease operations in the U.S. on Sunday. This situation makes Perplexity AI's proposal even more urgent.

Currently, TikTok has not responded to the proposal, and New Capital Partners could not be reached in time. Perplexity AI is confident in its merger proposal, believing that merging rather than selling may be more likely to gain approval. As the situation develops, the outcome of future negotiations remains uncertain.

Key Points:

🌟 Perplexity AI has proposed a merger with ByteDance for the U.S. version of TikTok, aiming to address the impending ban.

⏳ TikTok faces a government ban in the U.S., and President Trump may grant it a 90-day grace period.

📈 The merger plan will allow most ByteDance investors to retain their stakes and introduce more short video content for Perplexity.