Snap and Perplexity End $400 Million AI Integration Deal

May 07, 2026
Snap has ended its $400 million partnership with Perplexity, which was intended to bring an AI search engine into Snapchat, according to its latest earnings report. The companies mutually agreed to terminate the deal in the first quarter of 2026.

The partnership between Snap and Perplexity AI has ended, according to TechCrunch. The $400 million agreement, announced in November 2025, was set to integrate Perplexity’s AI search engine into Snapchat and contribute to Snap’s revenue starting in 2026.

Snap said in its first quarter earnings report that the companies “amicably ended the relationship in Q1” and that its sales guidance for the year assumes no contribution from Perplexity. The integration, which had been tested with select users, would have allowed Snapchat users to ask questions and receive conversational answers directly within the app’s Chat interface.

The company reported 483 million daily active users, a 5 percent increase from the previous year, and 965 million monthly active users. Snap’s first quarter revenue was $1.53 billion, up 12 percent year over year, with a net loss of $89 million. In April, Snap announced plans to lay off about 16 percent of its global workforce as part of a broader focus on AI transformation.

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