Artificial Intelligence (AI) company Perplexity AI on Monday updated its proposed merge with TikTok that would allow the U.S. government to take a 50% stake in the new company, a source told The Hill.

The startup company proposed the merger earlier this month after the social media company faced a ban in the United States. The ban resulted in TikTok briefly shutting down before President Donald Trump brought it back by signing an executive order that said the ban would not be enforced for 75 days.

The revised proposal comes after the company received feedback from the Trump administration. The initial proposal sought to create a new structure that would merge Perplexity with TikTok’s U.S. branch, and include investments from other companies, per the Associated Press.

If the new proposal is accepted, the U.S. government would not have voting power or a seat on the company's board. 

Also, the proposal does not include TikTok’s algorithm.

The proposal comes after other investors have expressed interest in securing the social media platform. Employer.com Founder Jesse Tinsley led a group in a bid for the platform, and former Los Angeles Dodgers owner Frank McCourt joined "Shark Tank” investor Kevin O’Leary in pitching their own acquisition of the platform last week.

TikTok's parent company ByteDance has not commented on the proposal so far.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.