Washington: US company Perplexity AI, which has developed a search engine using artificial intelligence, has filed an application with the Chinese company that owns the social network TikTok, ByteDance, to merge with TikTok’s US division, CNBC News reported, citing an unnamed source.
On Friday, the US Supreme Court denied TikTok a request to delay the ban on the social network in the US effective January 19, according to a court ruling seen by RIA Novosti. The company argued that the ban violated freedom of speech under the US Constitution. Trump takes office on January 20. The White House said the final decision on the fate of the Chinese social network in the US should be made by the new administration led by Trump due to the time frame for the ban to come into effect. Trump responded to the Supreme Court and White House decision by telling CNN that he would make his own decision.
The possible new entity would combine not only Perplexity AI ans TikTok US, but also the New Capital Partners investment company, the broadcaster noted, citing an unnamed source.
As an unnamed source familiar with the situation told the channel, the new structure will allow most ByteDance investors to retain their shares in the authorized capital, while the possible deal between Perplexity AI and the TikTok owner could take months to complete. An unnamed source added to the channel that ByteDance had publicly made it clear that it would not sell TikTok’s US division, so Perplexity AI believes there is a chance of a merger.
Earlier, US President-elect Donald Trump said that he could give Chinese social network TikTok a 90-day grace period to comply with requirements before it was potentially banned in the United States.
TikTok is a short-video app owned by the Chinese company ByteDance. It was released in 2018. The social network has been under intense scrutiny by US authorities, who fear that the Chinese government could demand user data or use the app to spread propaganda. The company that owns TikTok has repeatedly expressed disagreement with these concerns. TikTok has about 170 million users in the US.
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