(Reuters) - Perplexity AI revised the merger proposal it had submitted to TikTok parent ByteDance, CNBC reported on Sunday. The proposal, to create a new entity combining Perplexity and TikTok U.S., would now also allow for the U.S. government to own up to 50% of the new company upon a future initial public offering, CNBC said.

AI search engine startup Perplexity AI has put forward a revised proposal for a merger with TikTok's US operations, reported Reuters.

STORY: TikTok’s fate in the U.S. remains up in the air. Reuters sources said Sunday that Perplexity AI has submitted a new merger proposal to the video app’s Chinese owner, ByteDance. That would create a new entity combining TikTok’s U.

Perplexity AI search startup has a new proposal to merge with TikTok, which would give the US government a stake of up to 50%.

The revised plan reportedly includes provisions for the US government to receive stock in the new company once Perplexity AI achieves an initial public offering valued

Perplexity AI has presented a new proposal to TikTok’s parent company that would allow the U.S. government to own up to 50% of a new entity that merges Perplexity with TikTok’s U.S. business, according to a person familiar with the matter.