Startup Perplexity AI has made a renewed attempt to acquire TikTok, proposing that the U.S. government own a 50% stake in the platform. This move comes as lawmakers express ongoing concerns over TikTok's algorithm due to its Chinese ownership by ByteDance.
A ban on TikTok was enacted on January 19, but the app resumed service just hours later after temporarily going offline in the United States. Perplexity AI's latest proposal includes an initial public offering valued at a minimum of $300 billion.
The startup had previously submitted an offer on January 18, prior to the app's temporary suspension, which TikTok did not accept. TikTok has acknowledged former President Donald Trump's involvement, stating that his comments provided clarity and assurance to service providers regarding the app's availability for over 170 million American users.
Despite the ban, TikTok has opted to challenge the decision legally rather than pursue divestiture, following a ruling from the Supreme Court that upheld the Protecting Americans from Foreign Adversary Controlled Applications Act as constitutional.
While there has been speculation regarding potential buyers, including YouTuber Mr. Beast and Elon Musk, TikTok's spokesperson has dismissed these rumors, stating that they cannot comment on 'pure fiction.' Currently, TikTok remains unavailable on U.S. app stores, though existing users who retained the app prior to the ban still have access.