Perplexity announced plans Friday to acquire TikTok’s U.S. operations, proposing to rebuild its algorithm from scratch in American data centers and open-source the code—a bold bid that faces skepticism given the startup’s $18 billion valuation against TikTok’s $30-50 billion price tag.
The AI search company outlined seven key steps in its public proposal, claiming it could avoid monopolistic outcomes by operating independently of ByteDance. “Perplexity is singularly positioned to rebuild the TikTok algorithm without creating a monopoly, combining world-class technical capabilities with Little Tech independence,” the company wrote.
- Rebuilding the algorithm: TikTok’s recommendation system would be reconstructed using Nvidia Dynamo technology in U.S. data centers with domestic oversight.
- Open-source transparency: The new algorithm’s code would be publicly accessible, a first for a major social platform.
- Citation integration: Video creators could add source attributions, mirroring Perplexity’s existing citation features for text-based answers.
- Search upgrades: Perplexity’s AI search tools would tap into TikTok’s video library for real-time answers.
- Cross-platform perks: Users linking Perplexity and TikTok accounts would get “more relevant” content recommendations.
- Multilingual access: Automatic translation would expand TikTok’s reach across language barriers.
The bid arrives as TikTok’s legal limbo intensifies. The Supreme Court greenlit a potential U.S. ban in January, causing a 14-hour app blackout. President Trump later delayed enforcement until April 5 via executive order. ByteDance has resisted selling TikTok’s U.S. division despite pressure.
Perplexity faces heavyweight rivals: Oracle, Microsoft, and a Frank McCourt-led investor group are all pursuing TikTok deals. The startup’s credibility is further strained by its history of attention-grabbing moves, including a $2.5M Super Bowl ad mocking Google’s AI errors, an attempted F1 sponsorship, and claims of hiring actor Jimmy O. Yang as “Chief Security Officer.”
