Mar 24, 2025 23:00:00

AI search company Perplexity bids to acquire TikTok, pledges to open-source TikTok's algorithm

On January 19, 2025

, the Act to Protect Americans from Applications Controlled by Foreign Adversaries, which can be called a de facto TikTok ban, came into force, and as a result, TikTok's continuation of its service remains unclear. In response to this, Perplexity, which develops AI chatbots, etc., has expressed interest in acquiring TikTok.

Rebuilding TikTok in America
https://www.perplexity.ai/ja/hub/blog/rebuilding-tiktok-in-america

AI startup Perplexity confirms interest to buy TikTok - The Economic Times
https://economictimes.indiatimes.com/tech/artificial-intelligence/ai-startup-perplexity-confirms-interest-to-buy-tiktok/articleshow/119326229.cms

Perplexity's bid for TikTok continues | The Verge
https://www.theverge.com/ai-artificial-intelligence/633973/perplexity-tiktok-bid

The TikTok Ban Act, which came into effect on January 19, 2025, not only suspended distribution of ByteDance-made apps such as TikTok and Lemon8, but also temporarily suspended the TikTok service itself.

TikTok's service was then restored within hours of being suspended thanks to President Donald Trump's efforts, and he signed an executive order to suspend the TikTok ban for 75 days.

President Trump signs executive order to suspend TikTok ban for 75 days - GIGAZINE

With the 75-day deadline set by the Presidential Order approaching on April 5, 2025, TikTok must quickly conclude a contract to sell its business to another company in accordance with the TikTok Ban Act's provision that 'if a binding agreement for the sale of TikTok is reached, the President may postpone the implementation of the law for 90 days.' In order for TikTok to continue its service, it must do so in accordance with the provisions of the TikTok Ban Act.

Various companies have expressed their intention to acquire TikTok, and Perplexity also expressed interest in acquiring TikTok on March 21, 2025. It had been reported that Perplexity was exploring the acquisition of TikTok, but this time Perplexity officially expressed its intention to acquire TikTok.

Perplexity AI is exploring a merger with TikTok, with the US government potentially taking a 50% stake - GIGAZINE

In the announcement, Perplexity announced plans to integrate TikTok into its AI search engine, Perplexity , saying, 'By combining Perplexity's answers engine with TikTok's extensive video library, we will be able to create the best search experience in the world, providing the answers both Perplexity and TikTok users are looking for, anytime, anywhere, regardless of medium.'

Specifically, Perplexity will be able to power TikTok searches with its answer engine, and TikTok videos will be brought into Perplexity so that Perplexity can provide further training.

In addition, since all answers generated by Perplexity are sourced, when they acquire TikTok, they will expand this feature to TikTok so that users can refer to information in real time while watching videos. Perplexity also points out that TikTok's algorithm is 'currently a black box' and claims that 'we will rebuild TikTok's algorithm from scratch to turn TikTok into the most neutral and trustworthy platform in the world.' To that end, Perplexity reported that in addition to developing a new algorithm, it plans to open up the 'recommendations' feed.

Meanwhile, it has been reported that ByteDance's existing investors, including General Atlantic, Susquehanna, KKR and Coatue, are looking to acquire TikTok's business in the U.S. According to sources, these investors are considering separating TikTok's U.S. business division, but ByteDance is considering maintaining its investment in TikTok's U.S. division.

It has been reported that a group of investors including Oracle and Microsoft are in talks to acquire TikTok. In particular, Oracle has appealed to the U.S. government that 'if we acquire TikTok, we will guarantee that it will not contain backdoors that the Chinese government can exploit ,' and in response, discussions are underway within the Trump administration regarding Oracle's plan to acquire TikTok.

Oracle and Microsoft reportedly in talks to acquire TikTok - GIGAZINE

Oracle has already been working with TikTok to implement an initiative to prevent data leaks called ' Project Texas ' since 2022. As a result, it has become clear that American user data is still being shared with ByteDance's headquarters in China, but the overseas media Financial Times, citing information from related parties, reports that 'Oracle is the most likely to acquire TikTok.'