Snap Signs $400 Million Deal With Perplexity to Add AI Search to Snapchat
Snap Inc. has agreed to a $400 million partnership with Perplexity AI to bring the AI search engine directly into Snapchat’s chat interface, according to Bloomberg. The integration will allow users to ask questions and receive conversational answers within the app, beginning in early 2026.
Perplexity will pay Snap in a combination of cash and equity, and Snap expects revenue contributions from the deal to start next year. The partnership was announced alongside Snap’s third-quarter earnings report, which showed revenue of $1.51 billion and 477 million daily active users, up 8% from the previous year.
Snap Chief Executive Evan Spiegel said the collaboration will make AI-powered discovery native to Snapchat and open the platform to more AI partners over time. The company’s existing My AI chatbot will remain available alongside the new Perplexity-powered search feature.
Snapchat+, the company’s subscription service, now has more than 17 million paid users. Snap indicated that small and mid-size advertisers were the primary contributors to its advertising growth in the third quarter.
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