AI startup Perplexity AI may merge with TikTok
January 20, 2025
The AI startup Perplexity AI, competing with OpenAI and Google, proposed to join forces with TikTok and its U.S. division. The plan is to create a single legal structure where Perplexity will manage the company with the involvement of new investors. The merger will allow ByteDance to retain its stakes, while Perplexity will integrate video content into its AI solutions, improving competitiveness and user experience.
Context of the deal
The situation with TikTok in the U.S. remains tense. On January 17, 2025, the Supreme Court upheld a law requiring ByteDance to sell the social network or ban it in the country, citing national security threats. TikTok warned of a potential shutdown for 170 million Americans, which sparked a wave of controversy. However, Donald Trump’s intervention on inauguration day temporarily halted the ban and allowed continued access to the service.
How could the merger affect TikTok and the AI market?
The merger of Perplexity AI and TikTok will open new opportunities for both sides. TikTok will continue to develop content using AI, attracting more advertisers and content creators, as well as strengthening its position in the U.S. Perplexity AI, gaining access to TikTok’s data and video content, will accelerate developments in generative AI and improve search technologies. This collaboration will create synergy that strengthens both companies in the market.
It is possible that the merger of two such large players as Perplexity AI and TikTok will set a new standard in the tech world. TikTok has already started implementing generative AI avatars for advertising purposes, and expanding AI capabilities on the platform could lead to even greater user and brand engagement.