The company called Perplexity AI has introduced a plan to merge with TikTok US to form a new company known as the New Capital Partners. As per media statements, the deal proposed aim to let the current investors of ByteDance continue to be the shareholders of the company; at the same time, it would enable the better integration of video content into Perplexity’s AI search.
TikTok is facing possible removal from the United States for security reasons related to national security. The US Supreme Court has recently approved laws that would force ByteDance to sell TikTok US or get a blockage. This decision has been due to concerns over social media’s use of data and relations with Beijing.
Perplexity AI’s merger proposal is an offer different from a straight sale. While other bidders, such as Frank McCourt and Kevin O’Leary, are interested in buying the company and then moving or selling its operations in the United States, Perplexity is interested in building a common enterprise instead of divesting TikTok’s US operations.
The presented model shows that the merger could be quite valuable for both entities. The $8 billion valued Perplexity AI company has investors such as Jeff Bezos and Nvidia. Its search engine is AI-based and gives the right context-sensitive response to the provided query. It would also provide enhanced search and overall value as TikTok generates a vast amount of video content.
Besides leverage, the study found that blockchain technology could also help in addressing some of the general issues raised about data security. Perhaps, the merged entity might reduce the problem faced by US lawmakers through using decentralized systems to maintain the privacy and security of users’ data.
The merger faces stiff competition, with Elon Musk reportedly advising ByteDance and potentially submitting a rival bid. Analysts predict a competitive bidding process, as TikTok’s valuation could exceed $40 billion.
If successful, the merger would position Perplexity AI as a formidable rival to tech giants like Google, challenging their dominance in search and digital content.
Perplexity AI's vision for the merger highlights the evolving relationship between AI, video content, and data security, potentially setting a new standard in the tech industry.