Perplexity AI has proposed that the U.S. government own up to 50% of a newly formed entity combining its operations with TikTok’s U.S. business. The initial proposal aimed to merge Perplexity with TikTok’s U.S. business and involve outside investors, but ByteDance has yet to respond. The updated proposal would enable the U.S. government to hold a 50% stake in a new entity following a $300 billion IPO. The revisions were made in response to feedback from the Trump administration. If the plan succeeds, the government’s shares would be non-voting and not have a board seat. The plan allows ByteDance to maintain some ties with TikTok, but requires full U.S. board control.
