Perplexity AI has submitted an updated proposal to merge with TikTok that would allow the U.S. government to take a 50 percent stake in the newly formed company, a source familiar confirmed to The

If the plan is successful, the shares of TikTok owned by the government would not have voting power, the person said.

The latest plan for a TikTok buyout, by Perplexity AI, would give the U.S. government up to a 50% stake in the company’s domestic business.

ByteDance, TikTok’s parent company, is required to sell the app to a U.S.-based buyer or face a nationwide ban.

White House is reportedly in talks with Oracle and US investors to take control of TikTok, aiming to mitigate concerns over its Chinese ownership. This potential deal would allow TikTok's parent company,

He previously floated a joint venture, saying that the US should be entitled to half of the app.

There are already signs that Elon Musk’s marriage of convenience to President Donald Trump could be a fraught union. Musk turned more than a few heads by taking the lead on defeating a government spending bill last month — Trump doesn’t like being overshadowed — and undercutting a just-announced White House AI project last week.