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Distinct Post > Business > Tech > Perplexity AI Proposes to Acquire TikTok, Vows to Revamp the App’s Algorithm Amid U.S. Pressure
Tech

Perplexity AI Proposes to Acquire TikTok, Vows to Revamp the App’s Algorithm Amid U.S. Pressure

Kelly Tyler Published March 22, 2025
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SAN FRANCISCO: AI startup Perplexity has expressed its interest in acquiring TikTok, proposing a transformative vision for the app that includes overhauling its algorithm, as the video-sharing platform faces mounting pressure to sever ties with its Chinese parent company, ByteDance, or face a potential ban in the United States.

In a blog post, Perplexity outlined its plan to merge its AI-powered search technology with TikTok’s vast video content library. The San Francisco-based company suggested that this combination would create “the best search experience in the world,” offering users more seamless content discovery while retaining control of the platform’s algorithm.

“Combining Perplexity’s answer engine with TikTok’s extensive video library would allow us to build the best search experience in the world,” the company stated. “We are uniquely positioned to rebuild the TikTok algorithm without creating a monopoly, combining world-class technical capabilities with independence from Big Tech.”

Perplexity’s proposal comes amid ongoing uncertainty surrounding TikTok’s future in the U.S. The video app is facing a deadline set by U.S. lawmakers to cut ties with ByteDance due to national security concerns about the Chinese government potentially accessing American users’ data and influencing U.S. public opinion.

Former President Donald Trump revealed that the U.S. government was in discussions with several groups interested in acquiring TikTok. “We’re dealing with four different groups. And a lot of people want it, and it’s up to me,” Trump stated while traveling on Air Force One, though he did not disclose the identities of the parties involved.

The legislation requiring TikTok to divest from ByteDance took effect on January 19. This law was enacted after concerns arose about the Chinese government’s potential use of TikTok for espionage and manipulation of U.S. political sentiment. TikTok briefly shut down in the U.S. and disappeared from app stores, much to the dismay of millions of users. However, a temporary suspension of the law’s enforcement allowed TikTok to restore its services and return to app stores in February.

While TikTok has not shown much interest in selling, several other potential buyers have emerged. These include the People’s Bid for TikTok, an initiative launched by real estate and sports tycoon Frank McCourt’s Project Liberty, as well as tech companies like Microsoft, Oracle, and a group led by internet personality MrBeast (Jimmy Donaldson).

Perplexity warned that an acquisition by investors could leave ByteDance with control of TikTok’s algorithm, while an acquisition by a competitor could lead to a monopoly in the short-form video space. The company argued that “society benefits when content feeds are liberated from foreign governments and globalist monopolists.”

In addition to its plans for the app’s algorithm, Perplexity also proposed building infrastructure for TikTok at data centers located in the U.S. to ensure that the platform is fully overseen by U.S. authorities. The startup also suggested making TikTok’s “For You” recommendation feed open-source, allowing users to cross-check information as they watch videos to ensure the accuracy of content.

With this bold proposal, Perplexity is positioning itself as a potential game-changer in the ongoing debate about TikTok’s future and the control of its influential algorithm.

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Kelly Tyler March 22, 2025 March 22, 2025
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