Introduction: Perplexity AI’s Ambitious Plan for TikTok
The company Perplexity AI is clearly showcasing its ambitions. Specializing in the development of generative artificial intelligence, this American startup now aims to acquire TikTok. The Chinese short-video-sharing platform is facing a complex situation in the United States. Perplexity AI’s move comes in a tense political context, marked by significant security concerns surrounding TikTok.
For several years, TikTok has been under pressure from U.S. authorities. The issue of data privacy is a major concern. Indeed, the United States accuses TikTok’s Chinese parent company, ByteDance, of accessing American users’ data. Amid these tensions, Perplexity AI proposes a radical solution: acquiring TikTok’s U.S. operations and restructuring them under American control.
Why Does Perplexity AI Want to Acquire TikTok?
A Regulatory Context Favorable to an Acquisition
In January 2025, the U.S. Supreme Court upheld the validity of a law banning TikTok in the United States. This ban will only be lifted if ByteDance sells its U.S. subsidiary to a local company. This decision has triggered a race against time to find a buyer before the deadline set for April 5, 2025.
Perplexity AI is seizing this opportunity to submit its bid. The goal is clear: acquire the U.S. subsidiary and create an independent entity. By acting quickly, Perplexity AI hopes to preserve jobs, economic activity, and avoid a sudden disruption for American users.
A Desire to Enhance Technological Transparency
Beyond the economic aspect, Perplexity AI also promotes an ethical vision. Its project includes making TikTok’s algorithm open source. The stated goal is to ensure full transparency regarding the platform’s operations. Such an approach could reassure both users and authorities.
By making the algorithm public, Perplexity AI directly addresses the criticisms of U.S. regulators. The company hopes to bolster trust and ensure better protection of user data.
Standing Out from American Tech Giants
Perplexity AI also aims to leverage this acquisition to establish itself against tech giants like Google, Meta, or Microsoft. Today, these companies dominate much of the social media and related technology landscape. By acquiring TikTok, Perplexity AI would position itself as a new key player in the American tech ecosystem.
The company also emphasizes its desire to avoid monopolies. By acquiring TikTok, Perplexity AI promises a more neutral and independent alternative. It aims to offer users a less biased experience that is more respectful of personal data.
Perplexity AI’s Detailed Acquisition Proposal
Creation of an Independent U.S. Entity: NewCo
The first version of Perplexity AI’s proposal, dated January 18, 2025, involved a direct merger of TikTok’s U.S. operations with the startup. Following discussions with the Trump administration, the company adjusted its strategy. It now plans to create a holding company called NewCo.
Under this new structure, ByteDance would sell its U.S. operations directly to NewCo. The latter would be majority-owned by American investors. The U.S. government would also hold a significant stake. This hybrid structure aims to reassure U.S. authorities and secure the American market.
An Ambitious Valuation for TikTok
Perplexity AI’s ambition doesn’t stop there. If NewCo goes public, it could achieve an exceptional valuation of at least 300 billion dollars. This valuation far exceeds the initial transaction amount, estimated between 30 and 50 billion dollars.
Thus, Perplexity AI highlights the significant economic potential of TikTok. The platform remains hugely popular and continues to generate millions of daily views on TikTok US. Such an acquisition could prove highly profitable for investors and American shareholders.
Challenges Perplexity AI Will Face
Raising Significant Funds for the Acquisition
While Perplexity AI demonstrates a clear intent to acquire TikTok, it will need to secure the necessary funds to make it happen. Currently valued at around 18 billion dollars, the startup will need to raise tens of billions more.
This fundraising effort represents a real challenge. To convince potential investors, the company will need to clearly demonstrate the profitability of the deal and its ability to effectively integrate TikTok into its business model.
Strong Competition in This Deal
Perplexity AI is not alone in this pursuit; several major U.S. tech players are also in the race. For instance, Oracle is interested in acquiring TikTok US. These giants already possess the financial and technical resources needed to complete such a transaction.
The startup will therefore need to double its efforts to convince ByteDance, U.S. authorities, and private investors that it is the best candidate to take over the platform.
Market Reactions to This Potential Acquisition
Between Enthusiasm and Skepticism
The news of Perplexity AI’s project has sparked mixed reactions. Some analysts see it as a media strategy to boost the startup’s visibility. Others, however, view it as a serious response to regulatory concerns surrounding TikTok.
Investors, for their part, are awaiting details on the financial structure and operational viability of such an acquisition. Uncertainty remains high, but Perplexity AI’s announcement is undeniably stirring the U.S. tech market.
A Positive Impact on Perplexity AI’s Image
Even if this acquisition doesn’t materialize, Perplexity AI will have succeeded in positioning itself as a major player on the U.S. tech stage. Its stated commitment to promoting open source and technological transparency enhances the company’s image with the public.
This communication strategy could therefore benefit the startup in the long term, increasing its appeal to potential investors.
Conclusion: A Strategic Acquisition to Watch Closely
Perplexity AI’s desire to acquire TikTok reflects the complex dynamics of today’s tech market. Between major economic stakes, regulatory imperatives, and bold technological ambitions, this potential acquisition raises many questions.
If successful, Perplexity AI would profoundly disrupt the social media landscape. It would become a benchmark for algorithmic transparency. However, the path forward is fraught with financial, regulatory, and competitive obstacles.
This bold move will remain an example of the contemporary challenges tied to the governance of digital platforms and the management of personal data. The future developments of this critical case for the global tech landscape will need to be closely monitored.
