Perplexity AI has revised its merger proposal to ByteDance, the parent company of TikTok, to include a provision allowing the US government to own up to 50% of the new entity following an IPO, CNBC reported.

Under the proposal, ByteDance would sell TikTok US to the investors, which would give TikTok's existing investors equity in the company. The proposal would also exclude TikTok's core recommendation algorithm,

The plan to save TikTok involves software company Oracle and a group of outside investors effectively taking control of the app's global operations, two sources with

Oracle would reportedly control TikTok's data collection, algorithm, and software updates, but Chinese owner ByteDance would maintain a minority stake.

The Trump administration is working with Oracle and investors like Microsoft to save TikTok, allowing ByteDance to keep a minority stake. Meetings are ongoing to finalize the deal, with a potential $200 billion price tag and oversight by Oracle to reduce Chinese ownership.