In an unexpected move, Perplexity AI has officially submitted a proposal to merge with TikTok USA. The artificial intelligence search engine startup has approached ByteDance, TikTok's parent company, with the idea of forming a new entity that combines Perplexity AI, TikTok’s U.S. operations, and new capital partners. According to a source familiar with the matter, this proposal could reshape the landscape of AI and social media.
What This Means for TikTok Business
The proposed structure allows ByteDance’s current investors to retain their stakes while opening doors for new partnerships. This approach aims to expand TikTok’s capabilities by integrating AI-driven insights from Perplexity AI. Imagine the possibilities when users can make a TikTok video or make a video for TikTok that is optimised through AI-enhanced tools!
The Rise of Perplexity AI
Perplexity AI has had a remarkable journey, starting 2024 with a valuation of $500 million and closing the year at an impressive $9 billion. This growth highlights the increasing investor interest in generative AI, despite controversies surrounding plagiarism accusations. With this proposed merger, Perplexity AI could introduce transformative features to TikTok, further enhancing the experience for creators looking to create new accounts on TikTok or explore the growing demand for video from TikTok.
Challenges Ahead
While the merger holds promise, there are hurdles to overcome. TikTok faces a potential ban in the U.S., with discussions around national security concerns and platform regulations continuing to unfold. TikTok’s CEO, Shou Zi Chew, expressed optimism in a recent video, thanking the Biden administration for considering solutions to keep TikTok available in the U.S.
What's Next?
If successful, this merger could redefine both the TikTok business and the AI industry. It will take months to finalise, but industry experts are already speculating that the combined entity could be valued at “well north of $50 billion.”
