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

AI search engine startup Perplexity AI has put forward a revised proposal for a merger with TikTok's US operations, reported Reuters. According to a source, the search engine startup's plan involves creating a new entity that would combine Perplexity and TikTok US,

The revised plan reportedly includes provisions for the US government to receive stock in the new company once Perplexity AI achieves an initial public offering valued

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 revised its merger offer to TikTok parent ByteDance (BDNCE) over the weekend, with a new future IPO that could open up to a 50% stake for the U.S. government, according to multiple news reports.

Perplexity AI proposes a deal for the US government to own 50% of a new entity merging with TikTok's US business. The revised proposal allows ByteDance to retain some ties but excludes the algorithm.