Confusion AI bids to merge with TikTok US, CNBC reports via Reuters

(Reuters) – Confusion AI asked TikTok’s Chinese parent company ByteDance on Saturday to merge U.S. search engine startup TikTok US and create a new entity by combining them and Addis. Capital partners (WA:) CNBC reports.

Although President-elect Donald Trump on Saturday may grant the short video social media platform a 90-day reprieve on Monday, TikTok faces a US ban starting Sunday if it does not sever ties with ByteDance.

The new structure proposed by Perplexity will allow most of ByteDance’s existing investors to retain their equity stake and bring more video to Perplexity, the report said, citing an unnamed source familiar with the situation.

Confusion AI and TikTok did not immediately respond to requests for comment. New capital partners were not immediately available.

Confusion AI believes the bid is likely to succeed because the proposal is a merger rather than a sale, the report added.

Perplexity’s AI search tools allow users to quickly find answers to questions with sources and citations. From OpenAI to Meta Platforms (NASDAQ:)’ open source model Llama is powered by large language models that can abstract and generate data.

TikTok, which has captivated nearly half of all Americans, powered small businesses and shaped online culture, said on Friday it would go dark in the U.S. on Sunday unless President Joe Biden’s administration gives approval to companies like Apple (NASDAQ:) and Google. NASDAQ:) that they will not face enforcement action when the ban is implemented.