Perplexity AI has submitted a revised proposal to merge with TikTok, in an association that will give the U.S. authorities as much as 50 p.c possession of the brand new entity.

The Related Press first reported on the new proposal. A supply with data of the bid confirmed to TechCrunch that the AP’s reporting is correct.

The AI search engine had previously proposed creating a new company by combining Perplexity, TikTok US, and extra fairness buyers. Below the brand new bid, the federal government would obtain its stake after an preliminary public providing of at the least $300 million, whereas TikTok’s present Chinese language proprietor ByteDance might additionally retain possession, in line with the AP.

Perplexity reportedly revised its bid based mostly on suggestions from President Donald Trump’s administration.

TikTok briefly went down last weekend resulting from a legislation forcing ByteDance to promote the app or see it banned in the US. It sprang again to life after Trump mentioned he would signal an govt order extending the sale deadline. He additionally mentioned he’d wish to see the U.S. obtain “50% possession,” though it wasn’t clear whether or not he meant the federal government or U.S. buyers.

Another report this week advised that the White Home was negotiating a deal that will see Oracle (which already supplies the infrastructure for TikTok’s U.S. site visitors) take over; when requested, Trump said he’s spoken to “many individuals about TikTok” however “not with Oracle.”