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Perplexity AI makes pitch for TikTok purchase

Perplexity AI is making a pitch for Tiktok as the Trump administration's deadlines attack deals and quickly bring the ban on popular video sharing platforms closer to its ban.

The Artificial Intelligence (AI) search engine, which first submitted a bid to fuse with Tiktok in January, claimed on Friday that it could create a new, more transparent algorithm and use AI and search capabilities to enhance the app.

“Titktok is rebuilt and promotes bewilderment will create the world's largest platform for creativity and knowledge discovery,” the company wrote in a blog post.

Perplexity said it will create an open source recommendation system, with infrastructure developed and maintained in the US that will likely not include its own algorithms on Tiktok.

Search engines also argued that reconstructing Tiktok's algorithms without creating a monopoly “is in a singular position.”

“Acquisitions by a consortium of investors could effectively be under control of the algorithm, but acquisitions by competitors could create monopolies in short-form video and information spaces,” Perplexity wrote.

The argument hits with a point where President Trump repeatedly cited his opposition to ban Tiktok last year. During the 2024 campaign, he often pointed out the possibility of a ban enriching other platforms such as Facebook.

Perplexity also highlighted that while bringing Tiktok videos to search engines, its citation and search capabilities can be extended to Tiktok.

“This integration allows users to seamlessly migrate between Tiktok's scrolling experience and Perplexity's powerful research capabilities.

Perplexity pitches occur as you face competition with several other potential buyers. Earlier this month, Trump said his administration is in talks with four different groups about potential deals.

According to the New York Times, Larry Ellison's Oracle has reportedly become a major candidate, and the software company is meeting with top Capitol Hill aides this week.

The Trump administration faces a deadline that is rapidly approaching to sign a contract. Trump signed an executive order on his first day in office and suspended the 75-day ban on Tiktoc.

The ban was set to come into effect on January 19, before Trump took office, after a large, bipartisan majority in Congress passed a law last April requiring Tiktoc's China-based parent company to sell from the app or face a US ban.

Former President Biden signed the bill, but ultimately chose not to put it into effect on his last day in office. Trump delayed the execution until April 5th.

The president said earlier this month that if the deal doesn't reach time, it would “probably” extend the deadline again. But Commerce Secretary Howard Lutnick said last week that Trump wanted to launch the deal based on the current deadline, and that the president “doesn't want to ask for an extension.”

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