New Delhi, Jan 27 (IANS): US-based artificial intelligence (AI) company Perplexity has reportedly submitted a revised proposal to merge with Chinese short-form video platform TikTok.

US President Donald Trump last week signed an executive action that delays enforcement of the nationwide TikTok ban in the US for 75 days.

According to a TechCrunch report, citing sources, the Perplexity arrangement would give the US government up to 50 per cent ownership of the new entity.

Perplexity had previously proposed creating a new company by combining itself with TikTok US and additional equity investors.

According to reports, under the new bid, the government would receive its stake after an initial public offering of at least $300 million, while TikTok’s current Chinese owner ByteDance could also retain ownership.

TikTok briefly went down last week due to a law forcing ByteDance to sell the app or see it banned in the United States. It, however, came back to life after Trump said he would sign an executive order extending the ban deadline.

Trump's executive order directed his Attorney General to not levy fines against app stores and service providers that continue helping TikTok stay up.

TikTok CEO Shou Chew attended Trump's inauguration, seated next to Tulsi Gabbard, who is nominated to serve as director of national intelligence. The company also sponsored a Washington party to celebrate the inauguration.

The law required that starting January 19, TikTok be banned in the US unless it sells to a buyer from America or one of its allies. The law gives the President broad discretion on how to enforce the ban.

Trump has stressed the need to have a "level-playing field" with China regarding the trade situation. He also held a telephone conversation with Chinese President Xi Jinping and discussed a range of issues including trade, fentanyl, and TikTok.