Welcome to another edition of Overclocked! This week, we’re diving into a game-changing development in the tech world: Perplexity AI’s ambitious bid to merge with TikTok’s U.S. operations. Could this be the lifeline TikTok needs to survive in the United States?

Before we get started, here’s the quick scoop of what else is going on in the world of tech ⬇️ 

🤫 OpenAI CEO Sam Altman briefs US officials on rumored PhD-level AI super-agents

📰 Apple discontinues its AI Intelligence feature after high-profile errors

🧑‍⚖️ PhD student takes university to court over expulsion linked to AI use

🐍 AI designs proteins capable of neutralizing deadly snake venom

🎯 Google targets 500 million users for its Gemini AI platform by year-end

👠 Prada debuts collection inspired by AI and unexpected cultural themes

💰 Goldman Sachs CEO highlights AI’s transformative impact on IPO processes

🗣️ AI can now detect signs of depression in CEOs through speech analysis

Perplexity AI Makes Bold Move with TikTok Merger Bid

In a surprising turn of events, artificial intelligence search engine startup Perplexity AI has submitted a bid to merge with TikTok's U.S. operations, potentially reshaping the landscape of social media and AI-powered search. This audacious move comes as TikTok faces a looming ban in the United States.

A Last-Minute Lifeline for TikTok?

The proposed merger would create a new entity combining Perplexity AI, TikTok U.S., and new capital partners. This structure aims to allow most of ByteDance's existing investors to retain their equity stakes while simultaneously integrating more video content into Perplexity's platform. If successful, the deal could potentially save TikTok from going dark in the U.S. (again) and address longstanding national security concerns raised by the U.S. government.

Industry analysts estimate the transaction could be valued at over $50 billion, underscoring TikTok's massive user base and cultural impact. Perplexity AI, which started 2024 with a valuation of $500 million, saw exponential growth, reaching nearly $9 billion by year's end amid heightened investor enthusiasm for generative AI.

Political and Regulatory Hurdles

The bid emerges during a pivotal political moment, with President-elect Donald Trump set to take office today. Trump has indicated he may grant TikTok a 90-day extension to finalize a deal after his inauguration, potentially offering Perplexity and ByteDance the time needed to navigate complex regulatory requirements and secure approval from the Committee on Foreign Investment in the United States (CFIUS).

Implications for the Tech Industry

This merger has the potential to disrupt the tech industry significantly. By combining a cutting-edge AI search engine with one of the world’s most popular social media platforms, the deal could challenge tech giants like Google and reshape how users discover and interact with online content. It also reflects a broader trend of AI integration into various digital ecosystems, a shift that could redefine the future of search and social media.

As the clock ticks down to the potential TikTok ban, ByteDance’s response to Perplexity AI’s bid will be critical. TikTok’s millions of U.S. users and the broader tech community are anxiously awaiting updates. With the possibility of a 90-day extension under the new administration, the coming weeks will likely determine the future of TikTok in the U.S. and the trajectory of Perplexity AI’s bold ambitions.

In Other News: OpenAI Founder Sam Altman’s Secretive AI Briefing Could Change Everything

OpenAI CEO Sam Altman has scheduled a confidential briefing with top U.S. officials on January 30, fueling speculation about a groundbreaking AI development. Insiders hint at "Ph.D.-level super-agents" capable of performing intricate human-like tasks with unprecedented precision.

While OpenAI staff are reportedly excited yet uneasy, this meeting could mark a pivotal moment for AI policy and innovation. Stay tuned for updates as the tech world anticipates what might be the next major leap in AI capabilities.

📹️ Have you tried Sora yet? Check out our prompt of the week and see if you can beat it! ⬇️ 

Think you can make a cooler video? Remix this prompt and send us the link!

This week’s spotlight on Perplexity AI’s bold TikTok merger bid highlights the ever-evolving intersection of AI and social media, with major implications for the future of tech. As TikTok’s fate in the U.S. hangs in the balance, the coming weeks will undoubtedly be pivotal for both companies and the industry as a whole.

Stay tuned for updates on this high-stakes deal, and don’t forget to test your creativity with our Sora challenge! See you next time for more insights, challenges, and game-changing tech developments.

Zoe and Ivan from Overclocked