Perplexity AI has officially set its sights on TikTok, according to an exclusive CNBC report. The report stated that the artificial intelligence search engine startup has submitted a bid to ByteDance, TikTok’s parent company, to form a new merged entity. Additionally, the proposal aims to integrate Perplexity AI, TikTok U.S., and new capital partners into a single structure, allowing most of ByteDance’s existing investors to retain their equity stakes. This ambitious plan also seeks to enhance Perplexity’s offerings with a stronger focus on video content.
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TikTok Is Likely to Stay in the U.S.
TikTok was working for some users on Sunday after President-elect Trump stated that he would sign an executive order on Monday after his inauguration to delay a federal ban on the app. TikTok stopped airing its services in the U.S. on Saturday evening, a day before a law banning the service was scheduled to go into effect.
Meanwhile, TikTok CEO Shou Zi Chew stated in a video, “I want to thank President Trump for his commitment to work with us to find a solution that keeps TikTok available in the United States.”
Interestingly, ByteDance has been resistant to outright selling TikTok U.S., which is why Perplexity believes its merger proposal could succeed. According to the CNBC report, TikTok’s valuation could exceed $50 billion. The final figure will depend on whether ByteDance’s current shareholders choose to cash out or stay invested in the newly proposed entity.
Perplexity Is a Growing Contender in the AI Space
Perplexity AI has experienced a meteoric rise over the past year. The company started 2024 with a $500 million valuation and was valued at $9 billion by the end of last year, fueled by the generative AI boom and investor enthusiasm.
What Are the Best AI Shares to Buy?
For investors interested in investing in the sector of artificial intelligence, we have rounded up the best AI stocks to buy that analysts are bullish or cautiously optimistic about, using the TipRanks Stock Comparison tool. From this graphic, it appears that analysts are bullish about Nvidia (NVDA), Amazon (AMZN), Micron (MU), Google (GOOGL), Meta (META) and Microsoft (MSFT).
