Perplexity AI has proposed a merger with TikTok’s operations in the United States, according to a source.

The bid was submitted on Jan. 18 and seeks to form a new entity that combines Perplexity AI, TikTok US, and new capital partners.

This proposal reportedly allows current ByteDance investors to keep their equity stakes.

While the details remain undisclosed, the source believes the price is “well north of US$50 billion,” which could vary depending on shareholder decisions about cashing out or remaining in the new entity.