- Mindstream
- Posts
- Perplexity wants TikTok, but will it work?
Perplexity wants TikTok, but will it work?

PERPLEXITY
Perplexity AI has made a bold move: proposing a merger with TikTok U.S. and bringing in new investors.
The plan, submitted to TikTok’s parent company ByteDance, would let current ByteDance investors keep their stakes while adding more video content to Perplexity.
A source familiar with the discussions shared this information but wished to remain anonymous.
The AI search startup began 2024 with a valuation of $500 million but ended the year at $9 billion, showing rapid growth.
This rise reflects investor interest in AI-driven search, despite some criticism over plagiarism claims.
Competitors like OpenAI’s SearchGPT and Google’s AI Overviews have already transformed how people find information online.
Here’s what you should know:
Merger Proposal: Perplexity AI wants to merge with TikTok U.S. and new investors, allowing ByteDance stakeholders to retain their equity.
Valuation Growth: Perplexity AI’s valuation soared from $500 million to $9 billion in 2024, driven by the generative AI boom.
TikTok’s U.S. Status: TikTok could go offline unless U.S. regulators agree to a solution.
A $50 billion question
The merger talks are expected to take time, as TikTok’s future in the U.S. remains uncertain.
ByteDance has been reluctant to sell the app, and TikTok U.S. might go offline unless the Biden administration reassures hosts like Apple and Google that they won’t face penalties.
President-elect Donald Trump has suggested he will give TikTok another 90 days to resolve the situation.
Since the merger is not a sale, ByteDance is open to considering it, with the deal estimated at over $50 billion.
The final amount depends on which ByteDance investors choose to stay involved or sell their stakes.
TikTok’s future might literally be in the hands of AI now.