The deal will embed Perplexity “answer engine” directly within Snapchat chat interface, enabling users to ask questions and receive real-time, conversational responses drawn from verifiable sources without leaving the app.
Snap Inc. announced a landmark partnership with Perplexity AI valued at approximately $400 million, marking a major leap in how the Snapchat platform will incorporate conversational, AI-powered search.
Under the agreement, Perplexity will pay Snap the sum over one year in a mix of cash and equity, and the integration of its answer engine into the app interface is slated to begin in early 2026.
Snap said the move positions the company as not only a social platform but also a destination for discovery and search, thus expanding its appeal beyond traditional messaging and sharing. “Our goal is to make AI more personal, social, and fun — woven into the fabric of your friendships, Snaps and conversations,” said Snap CEO Evan Spiegel in the press release.
The move signals a shift in Snap’s strategy from being just a social media and messaging app to becoming a more fully featured platform for AI-driven experiences and discovery. The timing is also significant: as competition in the social/tech space heats up (especially around AI capabilities), partnering with a search-AI engine could provide Snap a meaningful differentiator.
The announcement came alongside Snap’s strong third-quarter results: the company reported revenue of $1.51 billion, a 10 % increase year-on-year, and narrowed its net loss to $104 million from $153 million a year earlier. Daily active users rose to 477 million globally, up 8 %, while monthly active user base grew to over 900 million globally.
Following the announcement, Snap’s shares surged over 20% in after-hours trading, reflecting investor enthusiasm for the company’s AI ambitions.
In response to some data privacy concerns, Snap noted that user queries processed by Perplexity would not be used for targeted advertising.
