ByteDance, the parent company of TikTok, has a limited time to sell the platform, leading to various companies expressing interest in acquiring it. Among them, Perplexity, an artificial intelligence search engine firm, has put forward its proposal to take over TikTok and restructure its recommendation system. The company argues that it can provide a neutral alternative, avoiding monopolistic control and ensuring transparency. Perplexity also plans to host TikTok’s infrastructure in the U.S., complying with national security concerns and regulatory standards. This proposal comes amidst discussions from multiple potential buyers, signaling increasing interest in the platform’s ownership.
When TikTok faced scrutiny before, companies like Microsoft (NASDAQ:MSFT) and Oracle explored acquisition possibilities, though no deal materialized. The concern over foreign influence on TikTok has been ongoing, leading to legislative efforts to divest ByteDance’s control. Previous potential buyers focused on maintaining operations rather than proposing a structural overhaul of TikTok’s algorithm. In contrast, Perplexity’s approach emphasizes rebuilding the algorithm with transparency, marking a shift from past discussions on ownership.
How Does Perplexity Plan to Restructure TikTok?
Perplexity has emphasized that it aims to develop a new recommendation system that would be open source. The company argues that by making TikTok’s algorithm transparent, it would prevent external manipulation and provide users with a more trustworthy content feed. Additionally, Perplexity plans to ensure that TikTok remains independent rather than controlled by a large competitor, which it claims could create a monopoly in the short-form video market.
“The TikTok algorithm today is a black box. We believe these recommendation systems should be transparent,” Perplexity stated in its blog post. “To eliminate risks of user manipulation, we propose rebuilding TikTok’s algorithm from the ground up with transparency as the guiding principle.”
What Security Measures Would Perplexity Implement?
To address security concerns, Perplexity proposes hosting TikTok’s infrastructure in American data centers under U.S. oversight. The company claims that this step would align with national privacy regulations and prevent foreign influence on the platform’s operations. According to Perplexity, ensuring that TikTok’s recommendation system is fully controlled within the U.S. would mitigate concerns raised by lawmakers over ByteDance’s ownership.
“Perplexity is singularly positioned to rebuild the TikTok algorithm without creating a monopoly, combining world-class technical capabilities with Little Tech independence,” the company explained in its blog post.
While Perplexity has outlined its vision, other companies remain in discussions to acquire TikTok. Reports indicate that Oracle is in advanced negotiations, while other potential buyers have also demonstrated interest. Perplexity is currently working on securing additional funding, with its valuation expected to rise significantly if its proposal moves forward. However, whether ByteDance and U.S. regulators will consider Perplexity’s plan viable remains uncertain.
The debate over TikTok’s ownership highlights broader concerns about data security and market consolidation. If Perplexity succeeds in acquiring TikTok, it could represent a shift toward transparency in content recommendation algorithms. However, implementing an entirely new algorithm while maintaining user engagement would be a challenging task. Whether Perplexity’s vision aligns with regulatory expectations and business feasibility will ultimately determine the outcome of this potential acquisition.
