US search engine startup Perplexity AI submitted a bid on Saturday to TikTok's Chinese parent ByteDance for Perplexity to merge with TikTok US, a source familiar with the company's plans told Reuters.CNBC first reported the offer.Perplexity would merge with TikTok US and create a new entity by combining the merged company with New Capital Partners, the person said.The new structure proposed by Perplexity would allow for most of ByteDance's existing investors to retain their equity stakes and would bring more video to Perplexity, the source said, requesting anonymity because the matter is confidential.TikTok did not immediately respond to requests for comment. New Capital Partners could not be immediately reached.Perplexity AI believes its bid may succeed since the proposal is a merger rather than a sale, the person said.Perplexity AI's search tools enable users to get fast answers to questions, with sources and citations. It is powered by large language models that can sum up and generate information, from OpenAI to Meta Platforms open-source model Llama.
