Perplexity AI submitted a revised merger proposal to TikTok’s Chinese parent ByteDance as the popular video-sharing app stares down a national ban, according to multiple reports. Under the new proposal, the US government would own up to half of the company after a future initial public offering, a source familiar with the matter told CNBC.

Perplexity is seeking to create a new $300-billion public company with TikTok's U.S. business and include investments from other investors.