Search AI startup Perplexity wants to acquire TikTok and change its algorithms

Perplexity first applied to buy a stake in TikTok in the US back in January, but it faces competition from heavyweights such as Oracle, Microsoft, and a consortium of investors led by Frank McCourt, who are among the main contenders to buy TikTok’s US division.

In a recent blog post, Perplexity described what it plans to do with TikTok if acquired.

«Perplexity has a unique opportunity to rebuild the TikTok algorithm without creating a monopoly, combining world-class technical capabilities with Little Tech’s independence,» the company wrote.

The Perplexity plan has the following points:

1. Rebuilding the TikTok algorithm from scratch «in American data centers with American oversight.»
2. Make the recommendation system «transparent» and open source.
3. Modernizing artificial intelligence infrastructure using Nvidia Dynamo technology.
4. Adding the ability to quote videos, similar to existing Perplexity features.
5. Integrating Perplexity’s search capabilities with the TikTok video library.
6. Increased personalization for users who link their Perplexity and TikTok accounts (which the startup claims «can help you find more relevant content on TikTok»).
7. Adding multilingualism through automatic translation

ByteDance, TikTok’s Chinese owner, has been reluctant to sell its U.S. unit, which has caused a lot of trouble for users and even a temporary ban. It’s unclear whether TikTok is taking Perplexity’s offer seriously — some analysts have estimated TikTok’s value at $30 billion to $50 billion. It was recently reported that Perplexity is in «preliminary talks» about a new round of funding that could value it at $18 billion.

The search startup, which was only founded in 2022, is known for its marketing antics. Perplexity recently released a commercial featuring Squid Game actor Lee Joon-jae, which poked fun at Google’s AI Overviews blunder .

The company also sought to sponsor a Formula One team for $5 million a year and claimed to have hired actor Jimmy O. Young (who starred in the TV series Silicon Valley) as its director of security.

And last fall, Aravind Srinivas, CEO of Perplexity, decided to intervene in the strike by IT workers at the New York Times. He offered his company’s services to mitigate the consequences of the picket during the US presidential election.

Given this list, it’s unclear whether TikTok’s offer is real or just another advertising gimmick.

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