Perplexity AI Revises TikTok Merger Proposal
Perplexity AI has proposed a new plan to merge with TikTok U.S., aiming to create a combined company, “NewCo.” The proposal outlines that the U.S. government could own up to a 50% stake in the company after it goes public, provided it achieves a valuation of $300 billion or more. This move is designed to address national security concerns while keeping TikTok operational in the U.S. Perplexity AI, whose valuation skyrocketed from $500 million to $9 billion in 2024 due to the AI boom, seeks to expand its presence in video content and counter competitors like Microsoft and Oracle. The funding for the merger would come from external investors, ensuring ByteDance investors are compensated while supporting NewCo’s growth. This approach is presented as a merger, not a sale, making it potentially more acceptable to ByteDance. President Trump, who has temporarily allowed TikTok to remain operational, is expected to decide on its future within 30 days.
Potential Ban on TP-Link Routers: What’s at Stake?
Concerns are mounting over the security of TP-Link routers, a leading brand that dominates 65% of the U.S. market. Lawmakers fear these routers could be exploited by China for cyberattacks or surveillance, raising questions about their safety for critical infrastructure, government agencies, and home users. The issue stems from vulnerabilities that might allow unauthorized access or data collection, prompting comparisons to the earlier ban on Huawei equipment. Experts suggest a phased approach to address the risks, starting with restrictions in federal and defense sectors. While TP-Link denies connections to the Chinese government and insists its U.S. operations are independent, the debate highlights the growing need to secure U.S. networks and explore safer alternatives.
Meta’s Strategy to Attract Creators Amid TikTok Uncertainty
Meta has been actively seeking ways to attract creators to promote Instagram on competing platforms like TikTok, Snapchat, and YouTube Shorts. This move is partly driven by the ongoing uncertainty surrounding TikTok’s future in the U.S., which has created concerns among both creators and advertisers. By offering incentives like cash bonuses and contracts requiring exclusivity on Instagram’s Reels feature, Meta aims to lure top creators away from TikTok. The deal includes posting a set number of Instagram Reels per month, with a focus on driving engagement and visibility for the platform. As TikTok faces challenges, creators are looking for more stability, and Meta hopes to leverage this moment to regain ground, especially with younger audiences. At the same time, competitors like Substack and RedNote are capitalizing on this shift, offering creators alternative ways to grow their presence and generate income.
Crypto Industry Thrives Under Trump’s Presidency
The crypto industry has quickly benefited from its support of Donald Trump, with several key actions taken during his presidency aimed at fostering digital asset growth. Trump’s executive order to promote cryptocurrencies has created a favorable environment for crypto companies and investors. This came after years of regulatory challenges under the previous administration. By signing this order, Trump directed agencies to support digital asset adoption and seize cryptocurrencies from criminals, which excited the industry. Additionally, the SEC’s decision to ease certain rules, like the one restricting banks’ ability to hold crypto, has opened doors for greater institutional involvement. However, some of Trump’s actions, such as launching meme coins linked to his family, have raised concerns within the crypto community, with critics questioning the legitimacy and potential scams tied to these coins. Despite these controversies, the industry continues to grow, with Bitcoin reaching new highs following Trump’s election victory.
Alphabet’s Stock Performance and Future Outlook
Alphabet’s stock recently surpassed $200 for the first time since its 20-for-1 stock split in 2022. This milestone, with a 1.1% increase on Friday and over 2% growth for the week, highlights the company’s strong start in 2025, as it outpaces the Nasdaq’s 3.3% rise. But what’s driving this success? Analysts are pointing to Alphabet’s growth in artificial intelligence, with new projects like Project Astra and Gemini 2.0 fueling optimism. The company’s third-quarter revenue saw a 15% increase, with cloud services hitting new records. However, despite these positive developments, Alphabet faces increased competition and challenges, particularly from rivals in the AI space, which could impact its future performance. With its earnings report coming up on February 4, Alphabet must navigate regulatory hurdles and the growing competition to maintain its momentum in the market.
