Last-minute proposal from Perplexity AI lands on TikTok’s doorstep.

In just one day, the TikTok ban in the US will go into effect, and many platforms are bracing themselves for the impact. However, it seems that some American companies are still trying to avoid this scenario. According to recent rumors, Perplexity AI, a company known for its AI technologies, has reportedly sent a proposal to Bytedance, suggesting a merger between the two companies. This could potentially keep TikTok active in the US, as it would align with the terms set by the US government.

CNBC reports that the proposal aims to create an entity that combines Perplexity AI, TikTok US, and New Capital Partners. This proposal comes after the US Supreme Court denied TikTok’s request to delay the ban. It’s worth noting that Bytedance has been resisting the idea of selling its stake in TikTok’s US operations, so it remains uncertain whether Perplexity AI’s proposal will have any advantage for them.

The idea behind Perplexity AI’s proposal is that a merger, rather than a direct sale, might be more appealing to TikTok and Bytedance, allowing current investors to retain a portion of their stakes in the entity. If this proposal is accepted, it could potentially delay the final decision by 90 days, which is the timeframe indicated by Donald Trump to be implemented once he takes office. It’s important to note that Trump has already indicated that this is one of the likely paths to be taken when he becomes president, but there is still no clear confirmation. Additionally, it remains unknown whether ByteDance will accept this proposal.

Regardless of the outcome and what happens next, it is expected that on January 19, 2025, TikTok will indeed be “disconnected” for users in the US, with access restricted in the region due to the ban in effect.