Whether TikTok stays with Perplexity AI's backing or goes, without that juicy algorithm ByteDance doesn’t seem willing to part with, the app won't ever be the same.

Perplexity AI has presented a new proposal to TikTok’s parent company that would allow the U.S. government to own up to 50% of a new entity that merges Perplexity with TikTok’s U.S. business, according to a person familiar with the matter.

Perplexity AI has revised its merger proposal with ByteDance to allow the US government to own 50% stake in the new company.