In a surprising move, AI-powered search startup Perplexity has announced its interest in acquiring TikTok, proposing a complete overhaul of the platform’s algorithm and infrastructure. The company aims to host all operations in the U.S., make the recommendation system open-source, and integrate AI-driven features like automatic translation and content citations. However, with tech giants like Microsoft and Oracle also in the race, Perplexity faces steep competition.
TikTok’s future in the U.S. remains uncertain as the platform faces regulatory scrutiny over privacy concerns and its ties to China-based parent company ByteDance. Earlier this year, the U.S. Supreme Court approved a potential ban, leading to temporary disruptions. A delayed enforcement deadline now looms, intensifying speculation about TikTok’s next steps. Amid this, Perplexity sees an opportunity to offer a transparent and AI-enhanced alternative.
Perplexity’s proposal includes rebuilding TikTok’s recommendation system using U.S. data centers, allowing users to see exactly how content is suggested. The company also plans to integrate AI-driven features powered by Nvidia Dynamo, offering improved performance and multilingual video translation. Additionally, users would be able to link their Perplexity and TikTok accounts for enhanced personalization.
Despite these ambitions, industry experts question whether Perplexity is making a genuine bid or simply seeking attention. The startup has a history of high-profile marketing stunts, such as celebrity ad campaigns and attempts to sponsor an F1 racing team. Given that TikTok’s U.S. business is estimated to be worth up to $50 billion—far exceeding Perplexity’s reported $18 billion valuation the feasibility of this acquisition remains uncertain.
With an April 5 deadline approaching for TikTok’s U.S. operations to comply with regulatory demands or face potential restrictions, discussions about a sale are intensifying. While Perplexity’s vision for a more transparent and AI-enhanced TikTok is compelling, the real question is whether the company has the resources and intent to make it happen.
