Perplexity AI has submitted a revised proposal to merge with TikTok, in a deal that would give the US government up to 50% ownership of the new entity, according to a report by The Associated Press. The AI search engine's revised bid comes after feedback from President Donald Trump's administration, which has been involved in negotiations to determine the future of the popular social media app in the US.

The new proposal deviates from Perplexity's initial plan, which involved creating a new company by combining Perplexity, TikTok US, and additional equity investors. Under the revised bid, the US government would receive its stake after an initial public offering (IPO) of at least $300 million, while TikTok's current Chinese owner, ByteDance, could also retain ownership.

The development comes on the heels of a tumultuous week for TikTok, which briefly went offline last weekend due to a law forcing ByteDance to sell the app or face a ban in the US. The app was restored after Trump said he would sign an executive order extending the sale deadline. The President also expressed his desire to see the US receive "50% ownership," although it was unclear whether he meant the government or US investors.

The White House has been actively involved in negotiations, with Trump stating that he has spoken to "many people about TikTok" but "not with Oracle." This raises questions about the role of Oracle, which already provides infrastructure for TikTok's US traffic, in any potential deal. Another report this week suggested that the White House was negotiating a deal that would see Oracle take over TikTok's US operations.

The Perplexity AI proposal adds a new layer of complexity to the ongoing saga, as the US government's potential stake in the company raises concerns about data privacy, national security, and the role of government in the tech industry. The deal, if approved, would mark a significant shift in the ownership structure of TikTok, which has been at the center of a geopolitical storm due to its Chinese ownership and concerns about data sharing.

As the situation continues to unfold, it remains to be seen whether Perplexity AI's revised proposal will gain traction, or if other suitors, such as Oracle, will emerge as frontrunners in the bid to acquire TikTok's US operations. One thing is clear, however: the fate of TikTok in the US hangs in the balance, with significant implications for the tech industry, national security, and the future of social media.