Perplexity wants to buy TikTok and open-source its algorithm

With the April 5 deadline looming over TikTok, an unexpected bidder just threw its hat into the ring. AI search darling Perplexity published a blog post proposing to buy TikTok and, in a wild twist, make its legendary recommendation algorithm open source.

The startup claims it is singularly positioned to rebuild TikTok without creating a monopoly, pitching itself as an independent, nimble alternative to Big Tech competitors.

Open-sourcing the secret sauce

Perplexity’s pitch is surprisingly detailed. The company says it would rebuild TikTok’s algorithm from the ground up inside American data centers, operating entirely under US oversight, and publish the code openly to ensure complete transparency.

On the hardware and engine side, Perplexity wants to upgrade the platform’s infrastructure using Nvidia Dynamo technology and add automatic translation features to break down language barriers.

It also plans to plug its own AI brain into the video app. That means letting users search TikTok’s massive video archive with Perplexity’s search engine and adding source citations to videos, just like the footnotes in its search results.

Users would also be able to link their Perplexity and TikTok accounts, which the startup claims would surface far more relevant content in their feeds.

Deep pockets or cheap buzz?

Making a bid is one thing; actually paying for it is another. ByteDance has shown zero appetite for selling its US business, even after a brief 14-hour blackout in January pushed President Trump to grant a 75-day reprieve that runs out next month.

Then there is the price tag. Analysts value TikTok’s US assets between $30 billion and $50 billion. According to Bloomberg, Perplexity is only in early talks for a funding round that would value the startup itself at $18 billion. It is competing against corporate juggernauts like Oracle, Microsoft, and a billionaire-led consortium.

There is also the elephant in the room: Perplexity loves a good stunt. The 2022 startup previously dropped over $2.5 million running a TV ad starring Squid Game’s Lee Jung-jae to mock Google’s AI Overviews blunders. It tried to sponsor an F1 team for $5 million, and even claimed Silicon Valley actor Jimmy O. Yang was its Chief Security Officer. Naturally, critics wonder if this bid is just noise.

Why it matters

On paper, the proposal is fascinating. If anyone could actually pull off an open-source, fully cited video engine, it would solve the algorithmic black box problem that has plagued social media for a decade.

Strategically, framing the bid around Little Tech independence is a stroke of genius. Pitching open algorithms directly undercuts antitrust concerns, presenting Perplexity as the squeaky-clean alternative to Big Tech monopolies like Microsoft or Oracle.

However, we think this is almost certainly another calculated marketing play. A startup hunting for an $18 billion valuation simply cannot swallow a $50 billion titan without massive institutional backing, which is nowhere in sight.

By inserting itself into the TikTok ban circus right before the April 5 deadline, Perplexity just bought millions of dollars in free global press for its search engine and AI brand. Even if the bid goes nowhere, they already got what they came for.