Perplexity AI has submitted a bid to merge with TikTok U.S. and its parent company, ByteDance, aiming to create a new entity. This merger would allow ByteDance's investors to retain their stakes while enhancing video capabilities for Perplexity. As the generative AI sector grows, Perplexity's valuation surged from $500 million to about $9 billion. President Trump indicated he would likely extend TikTok's operation in the U.S. for 90 days to negotiate.