Perplexity AI has reportedly revised its initial offer to merge with TikTok — this time with a carveout to give the U.S. government 50% control in a future initial public offering (IPO).

Perplexity AI revised its merger offer to TikTok parent ByteDance (BDNCE) over the weekend, with a new future IPO that could open up to a 50% stake for the U.S. government, according to multiple news reports.

Perplexity AI proposes a deal for the US government to own 50% of a new entity merging with TikTok's US business. The revised proposal allows ByteDance to retain some ties but excludes the algorithm.

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 revised its merger proposal to ByteDance, TikToks Chinese parent company, aiming to create a new U.S.-based entity, according to sources. The plan suggests that the U.S. government could own up to 50%