Less than twenty-four hours can change the fate of an app with over 150 million users. As the TikTok shutdown timer ticks down inexorably in the United States, a small (but brilliant) artificial intelligence startup is proposing an unexpected solution that could save the social network.
The last minute twist
Just when it seemed that everything had been decided, here comes the twist. Perplexity AI, a startup specializing in artificial intelligence-based search engines, has submitted a merger offer to ByteDance, the parent company of TikTok. According to as reported by CNBC, the proposal calls for the creation of a new entity that would combine Perplexity, TikTok US and New Capital Partners.
TikTok shutdown, a strategic proposal
Perplexity AI’s move is particularly astute. Instead of proposing an outright acquisition, the company has opted for a merger, a solution that may be more attractive to ByteDance. The proposed structure would allow existing investors to keep their shares, while Perplexity could benefit from the integration with the platform’s video content.
The time factor, and my “perplexities”
On paper, time is running out. The Supreme Court unanimously upheld the law requiring ByteDance to sell TikTok or face a ban in the United States. However, there is a possible way out: Donald Trump, who will take office on Monday, said which would “most likely” grant a 90-day extension to finalize a deal. In my own small way, if you’re interested in knowing my thoughts, my predictions on TikTok’s “survival” or shutdown I am here.
So far, it should be noted, ByteDance has resisted the idea of a sale, and there is no indication yet that the company is willing to consider this new merger proposal. TikTok said which will be “forced to shut down on January 19” unless the administration Biden does not immediately provide a definitive statement to reassure the most critical service providers.
The political stalemate
The outgoing administration is leaving the management of the situation to the Trump team. The White House spokeswoman Karine Jean Pierre called the announcement of TikTok's shutdown "a publicity stunt," saying there's no reason for TikTok or any other company to take action in the coming days before the Trump administration takes office. Of course, if Biden had had more time, the risk it would have been much more concrete.
Perplexity AI’s proposal represents a creative solution to a complex situation. While it may offer a way forward that satisfies all parties, it also requires a quick decision at a time of great political and regulatory uncertainty.
TikTok shutdown, the next few hours will be decisive
With the countdown to the shutdown continuing unabated, the next few hours will be crucial for TikTok’s future in the U.S. Perplexity AI’s proposal may be the last hope to avoid a shutdown, but time is running out and the parties involved will need to move quickly to find a solution.
The ball is now in ByteDance’s court. Their decision could not only determine TikTok’s future in the U.S., but also set a precedent for future international tech disputes.