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,

According to Reuters, the deal being negotiated by the White House would see ByteDance retaining a stake in the company — either the U.S. or global operations — but data collection and software updates would be overseen by Oracle, which already provides hosting for TikTok.

Trump reportedly told reporters during an Air Force One flight that he has been in talks with "numerous people" about a potential deal to "save TikTok."

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