The proposed merger, which aims to combine Perplexity, TikTok US, and New Capital Partners, is intended to address the mounting regulatory pressures faced by the popular video platform.
The deadline for compliance with a US law requiring ByteDance to either sell TikTok or face a ban is set for 19 January 2025. However, President-elect Donald Trump has suggested a possible 90-day extension to allow further negotiations. Perplexity’s proposal offers ByteDance’s investors an opportunity to retain their equity stakes while expanding Perplexity’s video offerings, positioning the AI company to strengthen its presence in the US social media market.
Industry insiders suggest that this merger could serve as a lifeline for TikTok, which has been under increasing scrutiny from US lawmakers over concerns about data privacy and national security. By joining forces with TikTok, Perplexity could significantly enhance its AI-driven search and video content capabilities, while potentially mitigating the regulatory crisis threatening TikTok’s future in the US.
Who is the Indian-born founder of Perplexity?
Aravind Srinivas is the CEO and founder of Perplexity. He grew up in the same city as Google’s CEO, Sundar Pichai, and developed an early interest in technology. He pursued his undergraduate studies in electrical engineering at the Indian Institute of Technology Madras (IIT Madras). Despite not being in the computer science department, he actively engaged in machine learning and artificial intelligence research, collaborating with professors and publishing papers in top-tier AI conferences.
After completing his undergraduate studies, Srinivas pursued a PhD at the University of California, Berkeley, focusing on reinforcement learning, generative models, and representation learning. Following his graduation, he worked as an AI researcher at Sam Altman’s OpenAI.
In 2022, Srinivas co-founded Perplexity AI alongside Andy Konwinski, Denis Yarats, and Johnny Ho. Under his leadership, the company has achieved significant growth, reaching a valuation of over $1 billion within two years.
India expansion plans
While the merger talks with TikTok dominate headlines, Perplexity is also making strategic moves to expand its presence in one of the world’s fastest-growing tech markets: India. Following a successful $500 million funding round that boosted its valuation to $9 billion, Perplexity is targeting a significant user base expansion in the country.
Srinivas recently announced plans to grow the company’s Indian user base from over one million to as many as 100 million, capitalising on the country’s vast population and increasing interest in artificial intelligence technologies. India’s growing awareness of generative AI—evidenced by the widespread use of platforms like ChatGPT—positions it as a key market for Perplexity as it seeks to enhance its global presence.
Perplexity is also actively hiring talent in India, with a focus on building a local workforce to drive growth. Beyond recruitment, the company is forging partnerships with local institutions and organisations to tailor its products to the specific needs of Indian users.
The company’s expansion strategy was underscored by a recent meeting between Aravind Srinivas and Indian Prime Minister Narendra Modi. The meeting highlighted the Indian government’s interest in fostering AI innovation and positioned Perplexity as a key player in this push. Experts suggest that Perplexity’s growth in India could lead to significant technological advancements, job creation, and a broader boost to the country’s status as a global AI hub.
Had the honor to meet Prime Minister @narendramodi ji. We had a great conversation about the potential for AI adoption in India and across the world. Really inspired by Modi Ji’s dedication to stay updated on the topic and his remarkable vision for the future. pic.twitter.com/KLC9eZV63C
— Aravind Srinivas (@AravSrinivas) December 28, 2024
Challenges in India’s diverse market
Despite its rapid growth, Perplexity faces significant challenges as it seeks to scale in India. The country’s linguistic and cultural diversity presents a complex landscape for AI technologies, making successful localisation critical to meeting the varied needs of Indian users. However, with a focused approach on regional requirements and strategic localisation, Perplexity appears well-positioned to address these challenges effectively.
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