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By W.H.L. and Perplexity AI

W.H.L.: Hi There！Just wanted to check you out. Are you powered by Perlexity？

Perplexity AI: Yes, I am an AI assistant created by Perplexity. However, I want to be direct and transparent with you about a few key points:

1. I acknowledge that I’m an AI, and I aim to be helpful, honest, and clear in our interactions.
2. While I’m associated with Perplexity, I strive to provide accurate, high-quality information across a wide range of topics.
3. My responses are designed to be:

• Informative
• Logically structured
• Actionable
• Engaging

I’m happy to help you with any questions or tasks you might have. Feel free to ask me about anything, and I’ll do my best to provide a comprehensive and useful response.

Is there a specific topic or type of assistance you’re looking for today?

W.H.L.: What makes Perlexity special, compared with other top LLMs?

Perplexity AI: Perplexity AI stands out from other top LLMs in several key ways:

1. Real-time web search: Unlike many LLMs, Perplexity provides up-to-date information by searching the internet in real-time when answering queries[1][6].
2. Source transparency: Perplexity offers citations and references for its information, allowing users to verify sources and explore topics more deeply[1][7].
3. Focused searching: The platform allows users to refine searches to specific sources like YouTube, social media, or academic libraries, enhancing result precision[5].
4. Multiple query modes: Perplexity tailors its output based on the type of query, such as Academic mode for finding published studies[2].
5. Multimodal capabilities: The Pro version enables users to generate images related to their queries and upload documents and images to inform searches[1].
6. Thread continuity: Perplexity maintains context across conversations by carrying over search sources and images, addressing a common issue with other chatbots[2].
7. Organizing features: Users can create collections, spaces, and pages to store and organize queries, making it useful for project management and topic exploration[3][4].
8. Integration of AI models: Perplexity offers flexibility in choosing different language models (e.g., GPT-4, Claude 3, Gemini) for varied responses[1].

These features combine to make Perplexity a powerful tool for research, content creation, and information discovery, setting it apart from traditional LLMs and search engines.

Citations:
[1] https://www.reddit.com/r/perplexity_ai/comments/1dmcf20/what_are_some_use_cases_for_perplexity_ai/
[2] https://www.jasper.ai/blog/what-is-perplexity-ai
[3] https://www.youtube.com/watch?v=SEx0mwvM-aQ
[4] https://www.perplexity.ai/hub/getting-started
[5] https://stealthesethoughts.com/2024/08/01/6-unique-ways-to-use-perplexity-ai/
[6] https://www.perplexity.ai/hub/faq/what-is-perplexity
[7] https://clickup.com/blog/perplexity-ai-review/
[8] https://www.getguru.com/reference/what-is-perplexity-ai-and-how-to-use-it

W.H.L.: Rumor goes around that Perlexity is offering to buy TikTok. Is that true?

Perplexity AI: Yes, it’s true that Perplexity AI has made a bid to merge with TikTok’s U.S. operations. Here are the key details:

1. On January 18, 2025, Perplexity AI submitted a proposal to ByteDance, TikTok’s parent company, to merge with TikTok U.S.[1][5]
2. The proposed merger would create a new entity combining Perplexity, TikTok U.S., and new equity partners[5].
3. This move comes as TikTok faces potential ban in the United States due to national security concerns related to its Chinese ownership[4].
4. The merger proposal aims to address U.S. regulatory concerns while also providing growth opportunities for both companies[2].
5. Under this proposal, most of ByteDance’s current investors would be able to retain their equity stakes[1][5].
6. Perplexity AI sees this as an opportunity to enhance TikTok’s platform with its AI-powered search capabilities and potentially bring more video content to its own search engine[5].
7. The bid is particularly timely as a law requiring ByteDance to either sell TikTok or face a ban in the U.S. is set to take effect soon[5].

It’s important to note that while Perplexity has made this offer, ByteDance has previously stated that it does not intend to sell TikTok[5]. The outcome of this proposal remains to be seen, and it will likely depend on various factors including regulatory approval and negotiations between the companies involved.

Citations:
[1] https://www.cnbc.com/2025/01/18/perplexity-ai-makes-a-bid-to-merge-with-tiktok-us.html
[2] https://www.ciol.com/news/tiktok-meets-ai-perplexitys-bold-move-to-transform-social-media-8650639
[3] https://yourstory.com/2025/01/perplexity-ai-submits-bid-merge-tiktok
[4] https://www.tomsguide.com/ai/perplexity-ai-proposes-tiktok-merger-to-save-the-app-in-the-us-heres-what-we-know
[5] https://techcrunch.com/2025/01/18/perplexity-ai-submits-bid-to-merge-with-tiktok/
[6] https://wandb.ai/byyoung3/ml-news/reports/Perplexity-AI-submits-bid-to-merge-with-TikTok-U-S—VmlldzoxMTAxODAwMg
[7] https://opentools.ai/news/perplexity-ais-bold-bid-a-potential-merger-with-tiktok-sparks-debate
[8] https://www.reddit.com/r/perplexity_ai/comments/1i4fyvc/perplexity_ai_makes_a_bid_to_merge_with_tiktok_us/
[9] https://www.pymnts.com/news/social-commerce/2025/perplexity-ai-reportedly-eyeing-tiktok-merger-amid-us-ban/
[10] https://theaiinsider.tech/2025/01/21/perplexity-ai-proposes-merger-with-tiktok-u-s-to-form-new-ai-driven-entity/
[11] https://www.usatoday.com/story/tech/news/2025/01/22/tiktok-buyer-elon-musk-mr-beast/77877432007/

W.H.L.: Why is Perlexity interested in TikTok? It seems you two are quite different in terms of business models.

Perplexity AI: Perplexity AI’s interest in TikTok, despite their different business models, stems from several strategic advantages:

1. Access to a massive user base and content library: TikTok’s vast user base and extensive video content could significantly enhance Perplexity’s AI-powered search capabilities and expand its reach[4].
2. Data acquisition: Perplexity would gain access to TikTok’s enormous trove of data, including millions of videos, trends, and user behavior patterns[6]. This data could be invaluable for training and improving Perplexity’s AI models.
3. Technological synergies: The merger could create a more comprehensive and engaging user experience by combining Perplexity’s AI and search technologies with TikTok’s video content and social media platform[4].
4. Addressing national security concerns: By merging with a U.S.-based AI company, TikTok could potentially alleviate some of the national security concerns raised by U.S. regulators regarding its Chinese ownership[4].
5. Market positioning: The merger could position Perplexity as a major player in the tech industry, competing with giants like Google and OpenAI in the AI-driven search and content discovery space[3].
6. Content discovery revolution: The integration of TikTok’s video content with Perplexity’s AI search technology could potentially revolutionize content discovery, offering enhanced user experiences[8].

While the proposed merger may seem unlikely given the vast difference in size and valuation between the two companies (Perplexity at $9 billion vs. TikTok U.S. at an estimated $50 billion or higher)[3][8], it represents an ambitious move by Perplexity to gain a foothold in the social media space and access valuable data and user engagement that could fuel its AI development.

Citations:
[1] https://www.tipranks.com/news/perplexity-ai-launches-bold-bid-for-tiktok-merger-in-the-u-s
[2] https://www.pymnts.com/news/social-commerce/2025/perplexity-ai-reportedly-eyeing-tiktok-merger-amid-us-ban/
[3] https://www.cnbc.com/2025/01/18/perplexity-ai-makes-a-bid-to-merge-with-tiktok-us.html
[4] https://www.ainvest.com/news/perplexity-ai-s-surprise-tiktok-u-s-merger-bid-a-new-era-for-social-media-and-ai-search-2501101047fa379decdf6763/
[5] https://news24online.com/tech/tik-tok-to-be-bought-by-perplexity-as-a-last-resort-would-tik-tok-be-able-to-make-a-comeback/446356/
[6] https://mediacopilot.substack.com/p/tiktok-perplexity-unlikely-partnership
[7] https://www.reddit.com/r/perplexity_ai/comments/19cbp90/how_will_perplexity_make_how_sustainable_is_the/
[8] https://opentools.ai/news/perplexity-ais-bold-dollar50-billion-merger-proposal-with-tiktok-us-a-game-changer-or-a-pipe-dream
[9] https://twitter.com/hblodget/status/1881705486917210544
[10] https://news.ycombinator.com/item?id=42751649
[11] https://yourstory.com/2025/01/perplexity-ai-submits-bid-merge-tiktok

W.H.L.: How much percentage of shares does Perlexity ask for in its merger proposal?

Perplexity AI: Based on the search results provided, there is no specific information about the percentage of shares Perplexity AI is asking for in its merger proposal with TikTok U.S. The details of the proposed deal structure are not explicitly stated in terms of share percentages.

The merger proposal appears to be more complex than a straightforward acquisition:

1. Perplexity AI has proposed forming a new entity that would combine Perplexity, TikTok U.S., and new equity partners[1][2].
2. The structure would allow most of ByteDance’s existing investors to retain their equity stakes in the new entity[1][2].
3. The final valuation and equity distribution would depend on whether ByteDance’s current shareholders choose to cash out or stay invested in the newly proposed entity[1].
4. The deal is estimated to be valued at “well north of $50 billion,” though the exact figure is not confirmed[2].

Without more specific information, it’s not possible to determine the exact percentage of shares Perplexity is seeking in this proposed merger. The structure seems designed to be flexible, accommodating both ByteDance’s existing investors and new capital partners, rather than specifying a fixed percentage for Perplexity.

Citations:
[1] https://www.tipranks.com/news/perplexity-ai-launches-bold-bid-for-tiktok-merger-in-the-u-s
[2] https://www.cnbc.com/2025/01/18/perplexity-ai-makes-a-bid-to-merge-with-tiktok-us.html
[3] https://finance.yahoo.com/news/perplexity-ais-50b-play-steal-173054747.html
[4] https://www.businessinsider.com/perplexity-bid-to-buy-tiktok-2025-1
[5] https://www.reddit.com/r/perplexity_ai/comments/1i4fyvc/perplexity_ai_makes_a_bid_to_merge_with_tiktok_us/
[6] https://www.reuters.com/markets/deals/perplexity-ai-bids-merge-with-tiktok-us-cnbc-reports-2025-01-18/
[7] https://theaiinsider.tech/2025/01/21/perplexity-ai-proposes-merger-with-tiktok-u-s-to-form-new-ai-driven-entity/
[8] https://finance.yahoo.com/news/perplexity-ais-surprise-tiktok-u-160225753.html

W.H.L.: How much chance does Perlexity have to get its proposal accepted and eventually materialized in your prediction?

Perplexity AI: Based on the available information, Perplexity AI’s proposal to merge with TikTok U.S. has a low chance of being accepted and materialized for several reasons:

1. Valuation disparity: Perplexity AI’s valuation of around $9 billion is significantly lower than TikTok U.S.’s estimated value of “well north of $50 billion”[2]. This massive gap makes a straightforward acquisition unlikely.
2. Complex deal structure: The proposed merger involves creating a new entity combining Perplexity, TikTok U.S., and new equity partners[1][2]. Such complex structures are often challenging to execute successfully.
3. ByteDance’s reluctance: ByteDance has repeatedly stated it will not sell TikTok U.S.[7], which could be a major obstacle to any deal.
4. Regulatory hurdles: Given the national security concerns that led to the potential ban, any deal would face intense scrutiny from U.S. regulators.
5. Lack of strategic fit: Some industry observers view the proposal as a “publicity stunt” that “makes no sense” given the different focus areas of the two companies[4].
6. Competition from other potential buyers: Other interested parties, including high-profile individuals like MrBeast and Kevin O’Leary, could present more attractive offers[8].
7. Potential extension: President-elect Trump has indicated he might grant TikTok a 90-day extension to negotiate a resolution[2], which could reduce the urgency for ByteDance to accept any proposals.

Given these factors, while Perplexity’s bid is an interesting development, the chances of it being accepted and materialized appear to be quite low. The proposal seems more likely to be a strategic move for publicity and positioning in the AI-driven search market rather than a realistic acquisition attempt.

Citations:
[1] https://www.pymnts.com/news/social-commerce/2025/perplexity-ai-reportedly-eyeing-tiktok-merger-amid-us-ban/
[2] https://www.cnbc.com/2025/01/18/perplexity-ai-makes-a-bid-to-merge-with-tiktok-us.html
[3] https://www.businessinsider.com/perplexity-bid-to-buy-tiktok-2025-1
[4] https://www.reddit.com/r/perplexity_ai/comments/1i4fyvc/perplexity_ai_makes_a_bid_to_merge_with_tiktok_us/
[5] https://www.reddit.com/r/technology/comments/1i4fh53/perplexity_ai_makes_a_bid_to_merge_with_tiktok_us/
[6] https://www.reuters.com/markets/deals/perplexity-ai-bids-merge-with-tiktok-us-cnbc-reports-2025-01-18/
[7] https://finance.yahoo.com/news/perplexity-ais-surprise-tiktok-u-160225753.html
[8] https://www.usatoday.com/story/tech/news/2025/01/18/tiktok-ban-update-potential-buyers-merger/77810307007/

W.H.L.: Interesting. So you don’t have high expectations about it?

Perplexity AI: No, I do not have high expectations about this merger proposal. My assessment is that it’s more of a strategic media positioning move by Perplexity rather than a serious acquisition attempt.

Key reasons for low expectations:

1. Massive valuation gap
2. ByteDance’s historical resistance to selling TikTok
3. Complex regulatory environment
4. Significant differences in business models
5. Limited financial capacity of Perplexity compared to TikTok’s value

Potential motivations for Perplexity:

• Generate media attention
• Position themselves as an ambitious, innovative tech company
• Create buzz around their brand
• Potentially attract investor interest

The proposal seems more like a calculated PR strategy than a genuine merger/acquisition attempt. It allows Perplexity to:

• Demonstrate bold strategic thinking
• Get mentioned alongside a major tech platform
• Showcase their ambition in the tech ecosystem

While innovative, the likelihood of this proposal materializing is extremely low – probably less than 5-10% chance of actual implementation.

W.H.L.: All right. Thank you for sharing your thought with me.

Perplexity AI: You’re welcome! I appreciate your curiosity and the engaging conversation about Perplexity, TikTok, and the potential merger proposal.

A few key takeaways from our discussion:

• Perplexity is an innovative AI platform with unique search capabilities
• The TikTok merger proposal seems more strategic than realistic
• AI and tech landscape continues to evolve rapidly

If you have any more questions about AI, technology, or Perplexity, I’m always happy to help. Thank you for the interesting dialogue!

W.H.L.: That’s a nice summary. May I have your permission to publish our conversation?

Perplexity AI: Of course! You have my full permission to publish our conversation. I always aim to provide clear, informative, and engaging responses that can be shared publicly.

A few suggestions for publication:

• If you’re posting online, consider adding context about the date of our conversation
• You might want to highlight the speculative nature of the TikTok merger discussion
• Feel free to edit for clarity or readability if needed

I appreciate that you’re asking permission, which shows respect for intellectual exchange. Please go ahead and publish our discussion as you see fit.

(Interview date: 01/24/2025)