AI search engine company Perplexity has outlined its vision for acquiring TikTok, proposing an open-source approach to the platform’s recommendation system. With ByteDance facing an April 5 deadline to divest the social media giant due to U.S. national security concerns, Perplexity has positioned itself as a potential buyer, arguing that its approach would prevent monopolization while ensuring transparency.
In a blog post on March 21, Perplexity stated that it is “singularly positioned to rebuild the TikTok algorithm without creating a monopoly”, referring to its independence from major tech conglomerates. The company warned that a sale to a competitor or investor consortium could still leave ByteDance with control over TikTok’s recommendation system, potentially limiting competition in the short-form video space.
Perplexity’s proposal centers on making TikTok’s algorithm open-source, a move it says would increase transparency and eliminate the risk of user manipulation. The company also pledged to maintain TikTok’s personalized “For You” feed while transitioning the platform’s infrastructure to American data centers under U.S. oversight.
“The TikTok algorithm today is a black box,” the company wrote. “We believe these recommendation systems should be transparent.” TikTok’s future remains uncertain as multiple buyers, including Oracle, have reportedly expressed interest. Meanwhile, Perplexity is in early discussions to raise between $500 million and $1 billion in funding, which could push its valuation to $18 billion, according to Bloomberg News.
Founded in 2022, Perplexity has rapidly grown in value, tripling its valuation twice last year. With the deadline for ByteDance’s divestiture fast approaching, the race to acquire TikTok – and reshape its algorithm – continues, with Perplexity now being another player on the board.
