WASHINGTON (AP) — 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.

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.

The deal would allow the U.S. operations of the app to be sold off to U.S. investors, with government owning up to a 50% stake, to create a new company but without ByteDance having to hand over the pr