Perplexity has announced an offer to acquire TikTok and completely overhaul its algorithm. In a statement published on the company’s blog, it emphasized that its independent status and technical capabilities allow it to modernize TikTok’s algorithm “without creating a monopoly.” This approach contrasts with competitors who, according to Perplexity, would likely aim to preserve ByteDance’s influence.
Under Perplexity’s plan, TikTok’s algorithm would undergo a full transformation, operating entirely under US oversight. The company intends to make TikTok’s recommendation system fully transparent, open-source its code, and modernize its AI infrastructure. It plans to utilize Nvidia Dynamo technology within US-based data centers to achieve these objectives.
Additionally, Perplexity has outlined several enhancements to TikTok’s functionality. These include adding a citation feature to videos, building on the platform’s existing AI capabilities, and integrating its search algorithms with TikTok’s video library. The company also aims to offer improved personalization options for users who choose to link their Perplexity and TikTok accounts. According to Perplexity, this step “could help deliver more relevant content on TikTok.” Another key feature in development is automatic video translation.
Competition and Regulatory Challenges
TikTok’s current owner, ByteDance, has shown reluctance to sell the US segment of the platform, contributing to ongoing uncertainty, notes NIX Solutions. In January, the US Supreme Court upheld the government’s authority to ban the app, leading to TikTok being unavailable in the US for roughly 14 hours. However, President Donald Trump signed an executive order delaying the ban for 75 days, with the deadline set for April 5.
It’s also worth noting that Perplexity faces significant competition in its bid to acquire TikTok. The AI startup initially proposed its offer in January but is contending with interest from tech giants Oracle and Microsoft, along with a consortium led by investor Frank McCourt. Given that TikTok’s US valuation ranges between $30 billion and $50 billion and Perplexity is currently in talks for an $18 billion funding round, it remains unclear whether ByteDance is considering the offer seriously.
Some analysts suggest that Perplexity’s bid may be more of a strategic move to attract attention to the company rather than a concrete acquisition plan. Nevertheless, we’ll keep you updated as more developments unfold.