A new TikTok proposal is on the table. Perplexity AI has proposed a merger that would give the U.S. government a 50% ownership stake.

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

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 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.

Perplexity AI has presented the new proposal to Byte Dance, TikTok’s parent company, as the organization searches for a U.S. buyer.