Perplexity AI submitted a revised merger proposal to TikTok’s Chinese parent ByteDance as the popular video-sharing app stares down a national ban, according to multiple reports. Under the new proposal, the US government would own up to half of the company after a future initial public offering, a source familiar with the matter told CNBC.

A proposal document viewed by CNBC, which was shared with ByteDance and prospective new investors, detailed the creation of a new U.S. holding company, “NewCo.”