Perplexity confirms interest in acquiring TikTok, plans a major overhaul
What's the story
Perplexity, a San Francisco-based artificial intelligence (AI) start-up, has confirmed its interest in acquiring TikTok.
The popular video-sharing app is already facing pressure to divest from its Chinese parent or risk a ban in the US.
Perplexity imagines combining its advanced AI-driven internet search with TikTok's massive video library to deliver "the best search experience in the world."
AI integration
Perplexity proposes algorithmic revamp for TikTok
Perplexity thinks it can revamp TikTok's algorithm without monopolizing the market.
In a blog post, the company said, "Perplexity is singularly positioned to rebuild the TikTok algorithm without creating a monopoly, combining world-class technical capabilities with Little Tech independence."
The proposal comes as talks continue over TikTok's future in the US. President Donald Trump recently revealed four groups are interested in acquiring the app, but didn't disclose their identities.
Legal pressure
US law mandates TikTok's separation from ByteDance
A US law has forced TikTok to split from its Chinese parent company, ByteDance, or risk a ban in the country.
The legislation took effect on January 19 amid fears that the Chinese government could leverage the platform to spy on Americans or secretly influence US public opinion.
Trump had also tried to ban TikTok during his first term over national security concerns.
Acquisition strategy
Perplexity's acquisition plan for TikTok
Perplexity has pitched an ambitious plan to acquire and reimagine TikTok.
The start-up intends to rebuild the app's algorithm "from the ground up," and make its recommendation system transparent and open-source.
Perplexity also plans to enhance TikTok's AI infrastructure, introduce citation capabilities similar to its own, and improve personalization for users who connect their Perplexity and TikTok accounts.
Market competition
Perplexity's bid for TikTok amid competition
Perplexity's bid to acquire TikTok isn't the only one in the fray. Other potential buyers include Microsoft, Oracle, and a group led by Internet personality MrBeast.
However, despite the competition, Perplexity is optimistic about its proposal.
Founded in 2022, the start-up has made headlines with its unconventional marketing strategies, including a commercial starring Squid Game actor Lee Jung-jae that highlighted issues with Google's AI.