Perplexity AI has proposed a groundbreaking deal that would give the U.S. government up to 50% ownership in a new entity combining Perplexity with TikTok's U.S. operations. This revised proposal, submitted last week, aims to address the Trump administration's concerns about TikTok's Chinese ownership.

Key aspects of the proposal include:

• A minimum $300 billion initial public offering
• Full U.S. board control
• ByteDance remaining as a minority investor
• Transfer of algorithm control away from Chinese ownership
• Separation of technology from Chinese influence

This new offer revises Perplexity's initial January 18 proposal, though ByteDance has not yet responded to either proposal. The revision aligns with former Treasury Secretary Steven Mnuchin's stance that TikTok's technology must be completely disconnected from China and ByteDance.

Parallel developments include reports of Oracle and other investors discussing a potential takeover of TikTok's global operations. The situation remains fluid as stakeholders work to address national security concerns while maintaining TikTok's operational integrity in the U.S. market.

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