WASHINGTON (AP) — 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 submitted an updated proposal to merge with TikTok that would allow the U.S. government to take a 50 percent stake in the newly formed company, a source familiar confirmed to The

TikTok, which faces the ticking clock of a ban enforcement, is being pursued by several suitors for a US merger or sale.