TikTok went dark in the U.S. after the Supreme Court upheld the controversial law banning the app, but its future is looking bright. Perplexity AI emerged as the most serious potential buyer seeking a merger with TikTok, shortly before the social media app restored its services thanks to Donald Trump’s recent pledge.
TikTok became unavailable in the U.S. on January 18, after the Supreme Court unanimously upheld the law to ban the app unless it is divested from its Chinese parent company ByteDance. It was promptly removed from Google and Apple stores, only to return a day later after President-elect Donald Trump pledged to make an executive order to delay the ban.
TikTok released an official statement announcing they’re “in the process of restoring services” on Sunday afternoon. Trump also addressed the issue by saying he’ll issue an executive order on Monday to “extend the period of time before the law’s prohibitions take effect.”
The search for a potential co-owner of TikTok continued amidst the shutdown, with Perplexity AI reportedly emerging as the top contender. According to CNBC, they submitted a bid to ByteDance to merge with TikTok U.S., while allowing for most of ByteDance’s existing investors to retain their equity stakes. This artificial intelligence search engine startup was launched in 2022, and it ended in 2024 with a valuation of about $9 billion after experiencing rapid growth.