Perplexity AI makes pitch for TikTok purchase

Perplexity AI is making its pitch for TikTok, as the Trump administration’s deadline to strike a deal and avert a ban on the popular video-sharing platform quickly approaches.

The artificial intelligence (AI) search engine, which initially submitted a bid to merge with TikTok in January, argued Friday that it could create a new, more transparent algorithm and enhance the app with its AI and search capabilities.

“A TikTok rebuilt and powered by Perplexity would create the world's greatest platform for creativity and knowledge discovery,” the company wrote in a blog post.

Perplexity said it would create an open-source recommendation system, with infrastructure developed and maintained in the U.S. Any TikTok sale would likely not include its proprietary algorithm.

The search engine also argued it is “singularly positioned” to rebuild TikTok’s algorithm without creating a monopoly.

“Any acquisition by a consortium of investors could in effect keep ByteDance in control of the algorithm, while any acquisition by a competitor would likely create a monopoly in the short form video and information space,” Perplexity wrote.

The argument hits on a point that President Trump repeatedly cited for his opposition to banning TikTok last year. During his 2024 campaign, he often pointed to a ban’s potential to enrich another platform, such as Facebook.

Perplexity also emphasized that it could extend its citation and search features to TikTok, while bringing TikTok videos to its search engine.

“This integration would allow users to seamlessly transition between TikTok's scrolling experience and Perplexity's powerful research capabilities—all within a single, unified feed,” it added.

Perplexity’s pitch comes as it faces competition from several other potential buyers. Trump said earlier this month that his administration was in talks with four different groups about a potential deal.

Larry Ellison’s Oracle has reportedly become a leading contender, with the software company meeting with top aides on Capitol Hill this week, according to The New York Times.

The Trump administration is facing a rapidly approaching deadline to strike a deal. Trump signed an executive order on his first day in office, halting enforcement of a TikTok ban for 75 days.

The ban was set to go into effect Jan. 19, the day before Trump’s inauguration, after large bipartisan majorities in Congress passed a law last April requiring TikTok’s China-based parent company ByteDance to divest from the app or face a U.S. ban.

Former President Biden signed the bill into law but ultimately opted not to enforce it in his final days in office. Trump further delayed enforcement until April 5.

The president said earlier this month that he would “probably” extend the deadline again if a deal isn’t reached in time. However, Commerce Secretary Howard Lutnick said last week that Trump wants to hammer out a deal under the current deadline, emphasizing the president “doesn’t like to ask for extensions.”

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