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FILE-In this photo illustration, the TikTok app is seen in the app store on a phone on March 13, 2024 in New York City. (Photo Illustration by Michael M. Santiago/Getty Images)
An artificial intelligence startup is proposing a plan to TikTok’s parent company ByteDance that would grant the U.S. government to own up to 50% of the social media platform.
Perplexity AI, a San Franciso-based company, released a proposal that would allow the U.S. government to own half of TikTok once Perplexity makes an initial public offering of at least $300 billion, a person, who was not authorized to speak about the proposal, told the Associated Press. The individual tells the AP Perplexity’s proposal was revised based on feedback from the Trump administration.
Additionally, the shares owned by the U.S. government would not have voting power, and the government also would not get a seat on the new company’s board, the person told the AP.
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Moreover, ByteDance would not have to completely cut ties with TikTok, a favorable outcome for its investors. But it would have to allow a “full U.S. board control,” the person said.
The plan also states that the China-based tech company would contribute to TikTok’s U.S. business without the proprietary algorithm that fuels what users see on the app, the AP reported, citing a document. In exchange, ByteDance’s existing investors will get equity in the new structure that arises.
This latest plan from Perplexity, follows an initial proposal the company introduced that called for the formation of a new structure that would merge Perplexity with TikTok’s U.S. business and include investments from other investors.
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The artificial intelligence company introduced the plan to ByteDance on Jan. 18, the day before the law banning TikTok in the U.S. took effect.
What they’re saying:
President Donald Trump told the Associated Press late Saturday that he expects a deal will be made in as soon as 30 days. “Numerous people are talking to me. Very substantial people,” Trump said. “We have a lot of interest in it, and the United States will be a big beneficiary. … I’d only do it if the United States benefits.”
The backstory:
TikTok was to be banned in the United States by Jan. 19 if it did not cut ties with ByteDance. The Supreme Court upheld the law, but President Donald Trump then issued an executive order to halt enforcement of the law for 75 days. TikTok briefly shut down in the U.S. a week ago but went back online after Trump said he would postpone the ban.
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The federal law required ByteDance to sever ties with TikTok by Jan. 19 or face a nationwide ban. The law was passed by Congress in April 2024 after it was included as part of a high-priority $95 billion package that provided foreign aid to Ukraine and Israel. President Joe Biden signed it, and then TikTok and ByteDance quickly sued on First Amendment grounds.
Information for this story was provided by the Associated Press and previous LIVENOW from FOX reporting. The AP received comments from a person familiar with the proposal. This story was reported from Washington, D.C.
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