Perplexity AI wants to merge with TikTok, give half of the company to the government

The 75-day grace period TikTok, the video app it bought to work in the US, has taken another turn. An American artificial intelligence company wants to merge with TikTok and give half of the ownership to the government.

Confusion AIThe company, which owns an artificial intelligence-powered search engine, has thrown its hat in the ring with a kind of marriage proposal that will allow TikTok to continue operating after a temporary federal ban imposed by an executive order of President Donald Trump.

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Perplexity, based in San Francisco and with offices in New York and Austin, had previously proposed a merger with TikTok His parent company ByteDance offered earlier this month, however updated.

Under the new terms, a holding company called NewCo will be created to steer the combined company toward a $300 billion initial public offering in which the U.S. government will own 50 percent. According to the Associated Press, the government will not have voting rights or a seat on the company’s board.

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Perplexity and TikTok did not immediately respond to a request for comment. ByteDance has not publicly responded to the Perplexity merger idea.

More details: Trump has said he won’t implement the TikTok ban until spring

Trump has previously said that TikTok could continue to operate in the United States, if at all 50 percent American ownership and the proposal appears to be framed in accordance with this ideal.

TikTok was briefly shut down in the US ahead of the ban, but reopened ahead of Trump’s inauguration after assurances he would intervene.

US Supreme Court upheld the ban in a decision earlier this month. TikTok is owned by China’s ByteDance, which is unwilling to give up ownership even if it loses its entire US audience.

Confusion isn’t the only player fighting to be a part of TikTok’s future. A group called People’s Choice for TikTokled by billionaire Frank McCourt and nonprofit Project Liberty, is seeking public support to create a “reimagined” TikTok. A consortium of investors led by Employer.com CEO Jesse Tinsley, also announced Offer for TikTok.