Whether TikTok stays with Perplexity AI's backing or goes, without that juicy algorithm ByteDance doesn’t seem willing to part with, the app won't ever be the same.

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.

Perplexity AI search startup has a new proposal to merge with TikTok, which would give the US government a stake of up to 50%.

TikTok, which faces the ticking clock of a ban enforcement, is being pursued by several suitors for a US merger or sale.

Perplexity AI has presented the new proposal to Byte Dance, TikTok’s parent company, as the organization searches for a U.S. buyer.

Perplexity AI, a U.S.-based search engine startup, is offering to merge with TikTok U.S. and open the door for partial government ownership.

Perplexity AI has revised its merger proposal with ByteDance to allow the US government to own 50% stake in the new company.

Perplexity AI In their fresh and updated proposal, AI and TikTok would merge, with the U.S. government gaining up to