WASHINGTON (AP) — Perplexity AI has presented a new proposal to TikTok’s parent company that would allow the U.S. government to own up to 50% of a new entity that merges Perplexity with TikTok’s U.S. business, according to a person familiar with the matter.

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Perplexity AI proposes a deal for the US government to own 50% of a new entity merging with TikTok's US business. The revised proposal allows ByteDance to retain some ties but excludes the algorithm.

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Perplexity AI has revised its merger proposal with ByteDance to create a joint entity, offering the US government up to 50% equity during an IPO valued at $300 billion. ByteDance would sell TikTok US to investors while retaining its recommendation algorithm.

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Perplexity AI proposes to merge with TikTok to address national security concerns raised by the U.S. government. Perplexity AI, a U.S.-based search engine startup, has revised its merger proposal for TikTok’s U.

Perplexity AI reportedly modified a proposed merger offer for ByteDance's TikTok US, with the US government to take a 50 per cent stake.

Perplexity AI has proposed a revised plan to merge with TikTok's US operations, creating a new entity that would allow the US government to hold up to 50 per cent ownership. This move comes after a previous proposal was presented to ByteDance on 18 January,

Under new plan, US government would acquire its stake during entity's initial public offering, which could be valued at $300B or more, local media reports - Anadolu Ajansı