Perplexity AI Eyes TikTok Acquisition, Valued at $18 Billion

Perplexity AI, a San Francisco-based AI developer, has expressed its interest in acquiring TikTok, the popular social media platform. This move comes as the company is reportedly in talks to raise funds at a potential valuation of $18 billion. Perplexity AI argues that it is the best American company to take over TikTok before a U.S. presidential order banning the Chinese-owned platform is expected to take effect on April 5.

In a blog post, Perplexity AI highlighted its unique position to rebuild TikTok's algorithm without creating a monopoly. The company combines world-class technical capabilities with "Little Tech" independence, which it believes sets it apart from other potential buyers. Perplexity AI was launched in 2022 and operates as an AI-powered search engine that delivers real-time, cited answers through a conversational interface. It integrates large language models with live web data to ensure accuracy and transparency.

Perplexity AI's co-founder and CEO, Aravind Srinivas, previously stated that the company's goal is to help users find answers to any question, positioning itself as an "answer engine" rather than just another chatbot. This approach aligns with its vision for a TikTok platform that prioritizes transparency and user empowerment.

On January 20, President Donald Trump signed an executive order delaying the enforcement of the Protecting Americans from Foreign Adversary Controlled Applications Act for 75 days. This delay provided an opportunity for an American buyer to take over TikTok, allowing time to assess national security concerns and prevent an abrupt shutdown of the platform used by millions of Americans.

Perplexity AI joins a list of American companies, including Oracle, Microsoft, and Walmart, that have previously expressed interest in acquiring TikTok. Other potential buyers include consortiums led by Frank McCourt, the former owner of the Los Angeles Dodgers, and Roblox CEO Jesse Tinsley. At one point, X owner Elon Musk was also rumored to be interested in acquiring TikTok.

Perplexity AI's proposal emphasizes the benefits of liberating content feeds from the manipulations of foreign governments and globalist monopolists. The company argues that an acquisition by a consortium of investors could keep ByteDance, TikTok's parent company, in control of the algorithm, while an acquisition by a competitor would likely create a monopoly in the short-form video and information space.

As Perplexity AI makes its case for taking over TikTok, the company is also eyeing a new funding round after valuing itself at $18 billion. This valuation and the news of the upcoming funding round come as Perplexity broadens its offerings beyond search to include AI-driven tools that help users find answers more efficiently. In February, Perplexity announced the waitlist for a new Comet browser that leverages AI agents for what the company called "Agentic Search."

Perplexity AI believes that its AI, powered by Nvidia’s new Dynamo platform, could enhance TikTok’s recommendation system while improving transparency amid rising concerns over misinformation. The company envisions a TikTok rebuilt and powered by Perplexity as the world's greatest platform for creativity and knowledge discovery.