Perplexity AI is making waves with a fresh proposal to merge with TikTok, and this time, the U.S. government could end up owning a significant chunk of the new company. According to reports, the AI search engine’s updated plan would give the government up to 50% ownership after an initial public offering worth at least $300 million.

This isn’t the first time Perplexity has pitched a merger. Earlier, the company suggested combining TikTok’s U.S. operations with itself and other investors. But the latest bid seems to have been tweaked based on feedback from the Trump administration. While TikTok’s current owner, ByteDance, could still hold onto some ownership, the U.S. government’s stake would be a game-changer.

The drama around TikTok isn’t new. Last weekend, the app briefly went offline due to a law pushing ByteDance to sell it or face a U.S. ban. It came back online after former President Donald Trump hinted at extending the sale deadline and expressed interest in the U.S. owning half of TikTok—though it’s unclear if he meant the government or private investors.

Meanwhile, rumors are swirling that Oracle, which already handles TikTok’s U.S. infrastructure, might step in as a potential buyer. When asked about it, Trump confirmed he’s talked to “many people” about TikTok but didn’t mention Oracle specifically.

As the TikTok saga continues, all eyes are on how this revised bid could reshape the future of one of the world’s most popular apps. Stay tuned for updates!