Is TikTok About to Merge With an AI Startup Backed By Jeff Bezos?!—How TF Did This Happen?

Well it looks like the Jeff Bezos backed Perplexity AI is looking to marry up. The potential bride? TikTok of all companies. The startup is barely out of its toddler years, and now wants to merge with one of the most controversial and addictive apps on the planet, all while Washington D.C. breathes down TikTok’s neck with a legislative hammer. 

However, what’s interesting here is the math that isn’t mathin’ when it comes to valuations. See, Perplexity AI is only valued at a nice $8 billion, while analysts are throwing around numbers of $40 billion for TikTok (which lets be honest, is probably the low end). However, Perplexity’s pitch isn’t about cash; it’s about creating a new entity that somehow keeps ByteDance’s current investors happy while giving Perplexity a massive leg up in its ongoing battle against Google. Because if there’s one thing more fun than disrupting a trillion-dollar search monopoly, it’s doing it with TikTok dance challenges in the background LOL. 

What’s more is that this fiasco comes with layers of tech-world malice. On one side, you’ve got Jeff Bezos, who’s backing Perplexity and clearly sees this as an opportunity to expand his portfolio of “companies that piss off Elon Musk.” On the other side, you’ve got Musk himself, “reportedly” advising ByteDance on its options while keeping an eye on TikTok for his own empire of chaos over at X. Bezos and Musk competing over yet another frontier isn’t news, but dragging TikTok into their cold war? That sparks headlines. 

(Source: IBD) 

Plus there’s the political circus surrounding this issue. ICYMI, or you’re just simply more productive than most Americans who make doom scrolling their entire personality, Congress just passed a law that could ban TikTok outright unless ByteDance divests its U.S. operations. The app has already gone temporarily dark in the U.S., and President Trump has signaled he might give TikTok a 90-day lifeline to sort things out. Perplexity’s bid is banking on that window, hoping that a merger gives ByteDance a way to save face while technically complying with the law. 

Whether lawmakers—or the public—buy into this workaround is another story entirely. After all, calling it a merger instead of a sale doesn’t magically erase concerns about data privacy, national security, or the fact that TikTok has basically turned into the nicotine of social media.

(Source: CNBC) 

Now with that said, if TikTok gets banned or sold off, Meta and Snap are ready to pounce, presumably scooping up disillusioned users and advertisers like vultures circling a carcass. Oracle, which provides cloud services to TikTok, could take a hit if the app goes offline for too long. And then there’s Google, sitting in the corner, nervously watching Perplexity’s every move. Because while TikTok is the immediate headline, the real story here is about disrupting search. Which has been Perplexity’s main AI moat since its inception.

Meaning, with Google's dominance being weakened with scorching antitrust rulings, Perplexity teaming up with TikTok could represent a new kind of threat—a platform that combines AI-driven search with TikTok’s ability to keep people glued to their screens for hours. It’s dystopian, sure, but it’s also kind of genius.

(Source: Giphy) 

In the end though, we know one thing for sure. If ByteDance is willing to sell, they’ll sell to the highest bidder—a.k.a. Something Perplexity simply wouldn’t be able to afford. But if they are willing to merge? Well, Bezos could end up adding another innovative tech disruption to his shrine. Of course, this is all speculation and “talks”---but they are talks. And they are happening right now.

For now, everything is still up in the air, and even though Perplexity is still private—the impact of a move like this will no doubt affect publicly traded companies you probably have in your portfolio. So with that, keep an eye out and stay safe and stay frosty, friends! Until next time…

P.S. Trump is officially back in the White House, meaning tomorrow, we could see fireworks. Make sure you are prepared and deciphering the market for the most explosive opportunities with Stocks.News premium. Don’t say I didn’t warn ya! 

Stocks.News holds positions in Google, Meta, and Snap as mentioned in the article.