As the deadline for a potential ban on TikTok in the United States approaches, Perplexity AI has emerged as the latest bidder hoping to give the video app a new corporate home. According to a source with knowledge of the offer, Perplexity has submitted a bid to merge with TikTok US, creating a new entity that would combine the two companies with new equity partners.

The proposed merger would allow most investors in TikTok's parent company ByteDance to retain their equity, and Perplexity aims to bring more video content to its AI search engine through the deal. This development comes as a law requiring ByteDance to either sell TikTok or face a ban in the US is set to take effect on Sunday, January 19, which marks the last day of President Joe Biden's administration.

Despite the looming ban, President-elect Donald Trump has indicated that he would "most likely" grant TikTok a 90-day extension, and TikTok's CEO has expressed gratitude for Trump's efforts. However, TikTok has stated that without explicit assurances of non-enforcement from the Biden administration, it will be "forced to go dark" on Sunday.

Notably, ByteDance has repeatedly expressed its reluctance to sell TikTok, and a report suggesting that the Chinese government is open to an acquisition by Elon Musk was dismissed as "pure fiction." Perplexity AI is hoping to overcome these reservations by proposing a merger rather than a sale, as reported by CNBC.

The bid from Perplexity AI is the latest development in the ongoing saga surrounding TikTok's future in the US. With the clock ticking down, it remains to be seen whether Perplexity's proposal will be successful or if other bidders will emerge to challenge the deal. TechCrunch has reached out to TikTok and Perplexity AI for comment, but neither company has responded at the time of writing.

The implications of a potential merger between Perplexity AI and TikTok US are significant, with the combined entity potentially creating a new powerhouse in the video search and AI space. As the situation continues to unfold, one thing is clear: the fate of TikTok in the US hangs in the balance, and the next few days will be crucial in determining its future.

In the broader context, the TikTok saga highlights the ongoing tensions between the US and China in the tech sector. As the two nations continue to vie for dominance in the global tech landscape, the fate of companies like TikTok will remain a key point of contention. As the industry waits with bated breath for the outcome of Perplexity AI's bid, one thing is certain: the future of tech is being shaped by the complex interplay of politics, business, and innovation.