Perplexity AI's TikTok Bid: US Government Could Get 50% Stake

AI startup Perplexity AI has proposed a new deal to merge with TikTok's US operations, giving the US government up to a 50% stake in the resulting entity. This revised proposal, submitted after a previous offer was ignored, aims to circumvent the impending TikTok ban. The US government's stake, acquired after an IPO exceeding $300 billion, would be non-voting, with no board representation. ByteDance, TikTok's parent company, wouldn't need to fully divest but would cede “full US board control” and relinquish TikTok's proprietary algorithm. The plan echoes former Treasury Secretary Mnuchin's suggestion of diluting Chinese ownership to comply with US law. Several investors are reportedly interested in TikTok, and President Trump anticipates a deal within 30 days.