Perplexity AI Advocates for TikTok Takeover as Company Eyes $18 Billion Valuation

San Francisco-based AI developer Perplexity AI was again making the case for taking over TikTok’s embattled social media platform amid reports that it had started talks to raise money at a potential $18 billion valuation.

In a blog post published on Friday, Perplexity claimed it is the best choice for an American company to take over TikTok before a U.S. presidential order banning the Chinese company is expected to take effect on April 5.

“Perplexity is singularly positioned to rebuild the TikTok algorithm without creating a monopoly, combining world-class technical capabilities with Little Tech independence,” Perplexity AI wrote.

Perplexity AI, launched in 2022, is an AI-powered search engine that delivers real-time, cited answers through a conversational interface. It combines large language models with live web data for accuracy and transparency.

“We want to communicate clearly to the end user that we’re not here to sell you another chatbot and alternative to ChatGPT,” Perplexity co-founder and CEO Aravind Srinivas previously told Decrypt. “We’re here to help find answers to any question, and that’s why we call [Perplexity] an answer engine.”

On Jan. 20, President Donald Trump signed an executive order delaying for 75 days the enforcement of the Protecting Americans from Foreign Adversary Controlled Applications Act, which would effectively ban TikTok in the United States. This delay allowed time to assess national security concerns while preventing an abrupt shutdown of the platform used by millions of Americans, and providing an opportunity for an American buyer to take over TikTok.

Perplexity joins a group of American companies—including Oracle, Microsoft, and Walmart—that have previously expressed interest in acquiring TikTok. Others eyeing a purchase of TikTok include consortiums headed by Frank McCourt, the former owner of the Los Angeles Dodgers, and Roblox CEO Jesse Tinsley. At one point, X owner Elon Musk was rumored to be interested in acquiring TikTok.

“Any acquisition by a consortium of investors could in effect keep ByteDance in control of the algorithm, while any acquisition by a competitor would likely create a monopoly in the short form video and information space,” Perplexity wrote. “All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists.”

While it makes its case for taking over TikTok, Perplexity AI is eyeing a new funding round after valuing the company at $18 billion, according to a report by Bloomberg. Citing persons familiar with the matter, Bloomberg reported that the funding round would range from $500 million to $1 billion.

The valuation and news of the upcoming funding round come as Perplexity broadens its offerings beyond search to include AI-driven tools that help users find answers more efficiently. In February, Perplexity announced the waitlist for a new Comet browser that leverages AI agents for what the company called “Agentic Search.”

Using its AI, powered by Nvidia’s new Dynamo platform, Perplexity said it could boost TikTok’s recommendation system while improving transparency amid rising concerns over misinformation.

“A TikTok rebuilt and powered by Perplexity would create the world’s greatest platform for creativity and knowledge discovery,” they said.

Decrypt reached out to Perplexity for comment.

Edited by James Rubin