Artificial intelligence startup Perplexity has expressed interest in acquiring TikTok, proposing a complete overhaul of its recommendation algorithm and making it open-source.
In a recent blog post, Perplexity detailed its vision of integrating AI-powered search capabilities with TikTok’s vast video content, claiming this would create the “best search experience in the world.” The San Francisco-based company emphasized its ability to redesign TikTok’s algorithm while preserving competition in the short-video market.
This development comes as TikTok faces an uncertain future in the United States. A law passed earlier this year mandates that the app must either be sold or face a ban due to national security concerns. US authorities have long speculated that ByteDance, TikTok’s parent company, could be pressured into sharing American user data with the Chinese government or influencing public discourse—allegations TikTok has consistently denied.
US President Donald Trump, currently serving his second term, confirmed that multiple parties have shown interest in acquiring TikTok.
“We are dealing with four different groups. A lot of people want it, and the decision is up to me,” Trump stated while traveling on Air Force One, without disclosing the names of potential buyers.
Among the interested parties is The People’s Bid for TikTok, a consortium backed by real estate and sports tycoon Frank McCourt’s Project Liberty initiative. Other contenders reportedly include Microsoft, Oracle, and a group led by internet personality Jimmy Donaldson, known as MrBeast.
TikTok, which was briefly taken down from US app stores as the January deadline approached, resumed operations after Trump delayed enforcement of the ban for two-and-a-half months. The app returned to Apple and Google’s platforms in February.
Perplexity warned that if TikTok were acquired by a group of investors, ByteDance might still maintain indirect control over its algorithm. On the other hand, if a major competitor took over, it could lead to a monopoly in the short-form video market.
“Society benefits when content feeds are freed from the influence of foreign governments and dominant global corporations,” Perplexity stated.
The AI firm also pledged to establish US-based data infrastructure for TikTok to ensure compliance with American regulations. Additionally, it vowed to make TikTok’s “For You” feed algorithm publicly accessible, allowing users to see how content is recommended.
As part of its proposal, Perplexity suggested a feature that would enable users to verify information while watching videos, aiming to curb misinformation on the platform.
It remains unclear whether ByteDance is actively considering a sale. The company previously resisted similar divestment pressures during Trump’s first term. However, with Washington pushing forward with regulatory actions, TikTok’s future in the US remains uncertain.
