Artificial intelligence startup Perplexity has expressed interest in acquiring TikTok, pledging to rebuild its recommendation algorithm from scratch and make it open-source.
In a blog post, Perplexity outlined its vision for integrating its AI-powered internet search capabilities with TikTok’s extensive video library, stating that the move would create the "best search experience in the world." The San Francisco-based firm argued that it was uniquely positioned to revamp TikTok’s algorithm while maintaining competition in the short-video space.
The development comes amid uncertainty over TikTok’s future in the United States, where a law passed earlier this year requires the app to be sold or banned due to national security concerns. Washington has long suspected that ByteDance could be compelled to share American user data with the Chinese government or influence public opinion, claims that TikTok has repeatedly denied.
US President Donald Trump, who is currently serving his second term, confirmed that multiple parties had shown interest in acquiring TikTok.
"We’re dealing with four different groups. And a lot of people want it, and it’s up to me," Trump said aboard Air Force One, without naming the potential buyers.
Among those reportedly in the race is The People’s Bid for TikTok, a consortium backed by real estate and sports tycoon Frank McCourt’s Project Liberty initiative. Other interested parties include Microsoft, Oracle, and a group led by internet personality Jimmy Donaldson, known as MrBeast.
TikTok, which briefly shut down in the US and was removed from app stores as the January deadline approached, resumed operations after Trump suspended the enforcement of the ban for two-and-a-half months. The app later returned to both Apple and Google’s platforms in February.
In its proposal, Perplexity warned that if TikTok were to be acquired by a consortium of investors, ByteDance could effectively retain control over the platform’s algorithm. Conversely, a sale to a major competitor would likely create a monopoly in the short-form video market.
"All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists," the AI firm stated.
Perplexity further pledged to establish US-based data infrastructure for TikTok, ensuring compliance with American regulations. The company also vowed to make TikTok’s "For You" feed algorithm publicly available, allowing users to understand how content is recommended to them.
Additionally, the startup proposed a feature that would enable users to cross-check information while watching videos, a move aimed at combating misinformation on the platform.
It remains unclear whether ByteDance is actively considering a sale, with TikTok having previously fought off similar attempts to force a divestiture under the Trump administration’s first term. However, with Washington pressing ahead with regulatory measures, the app’s future in the US remains uncertain.
