Key Takeaways
- Perplexity will pay Snap $400 million to integrate its AI search engine into Snapchat.
- The integration will reach over 940 million Snapchat users.
- Snap will start recording revenue from this deal in 2026.
Perplexity’s AI Search Comes to Snapchat
Snap has announced a significant partnership with Perplexity to integrate its AI search engine directly within the Snapchat app. This integration will allow Snapchat’s My AI chatbot to provide answers using Perplexity’s technology.
The deal, valued at $400 million, includes both cash and equity. It is set to expose Perplexity’s AI capabilities to Snapchat’s extensive user base of over 940 million people.
Financial Implications for Snap
Snap is expected to begin recording revenue from this deal in 2026. The announcement of this partnership coincided with Snap’s Q3 2025 financial results, where the company reported a 10% increase in revenue from the previous year, reaching $1.51 billion.
Despite narrowing its losses to $104 million from $153 million the previous year, Snap continues to focus on expanding its subscription service, Snapchat+, which now boasts over 17 million users.
FAQ
What is the value of the deal between Perplexity and Snap?
Perplexity will pay Snap $400 million in cash and equity.
When will Snapchat start benefiting financially from this deal?
Snap will begin recording revenue from the deal in 2026.
How many users will have access to Perplexity’s AI search on Snapchat?
Over 940 million Snapchat users will have access to the AI search feature.
Closing Summary
The partnership between Perplexity and Snap highlights the growing importance of AI in enhancing user experience on social media platforms. For businesses running their own software or systems, integrating advanced AI capabilities could offer significant competitive advantages and improve user engagement.
Source: Perplexity to pay Snap $400M to power search in Snapchat – techcrunch.com