Perplexity Proposes Open-Source Version of TikTok Algorithm

TikTok’s owner ByteDance has less than two weeks to sell the social media platform.

Now, artificial intelligence (AI) search engine firm Perplexity is making the case for why it should become the popular video-sharing service’s new owner, following weeks of reports that the company was interested in merging with TikTok.

“Perplexity is singularly positioned to rebuild the TikTok algorithm without creating a monopoly, combining world-class technical capabilities with Little Tech independence,” the company wrote on its blog Friday (March 21).

“Any acquisition by a consortium of investors could in effect keep ByteDance in control of the algorithm, while any acquisition by a competitor would likely create a monopoly in the short form video and information space. All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists.”

The company proposes taking measures to ensure users enjoy a “seamless experience” in the handover, maintaining the personalized “For You” feed while building a real-time recommendation system.

Perplexity added that this infrastructure would be built and housed in “American data centers with American oversight,” in keeping with U.S. privacy standards and regulations.

“The TikTok algorithm today is a black box. We believe these recommendation systems should be transparent,” the blog post added. “To eliminate risks of user manipulation, we propose rebuilding TikTok’s algorithm from the ground up with transparency as the guiding principle.”

To accomplish its vision for a neutral, trusted TikTok, Perplexity said it would develop not only a new algorithm, but make the TikTok For You feed open source.

Congress passed legislation last year requiring ByteDance — whose ties to China had sparked national security concerns — to find a new owner for TikTok by Jan. 19. President Donald Trump extended that deadline to April 5 after taking office.

Earlier this month the president said TikTok had interest from four possible suitors, while software firm Oracle is reportedly in talks to run the platform.

Meanwhile, Perplexity is reportedly in early talks on a new funding round, with the goal of raising $500 million to $1 billion, putting the company’s valuation at $18 billion.

That’s according to a Bloomberg News report, which noted that Perplexity — founded in 2022 — saw its valuation triple two times last year, going from $1 billion to $3 billion and then $3 billion to $9 billion. The company declined to comment when reached by PYMNTS.