U.S. search engine startup Perplexity AI has revised the merger proposal it had submitted to TikTok's Chinese parent ByteDance to create a new entity combining Perplexity and TikTok U.S., a person familiar with the proposal told Reuters on Sunday.

Perplexity is seeking to create a new $300-billion public company with TikTok's U.S. business and include investments from other investors.

If the plan is successful, the shares of TikTok owned by the government would not have voting power, the person said.

Perplexity AI revised the merger proposal it had submitted to TikTok parent ByteDance, CNBC reported on Sunday. The proposal, to create a new entity combining Perplexity and TikTok U.S., would now also allow for the U.