Snap and Perplexity signal $400 million deal to place AI search instantly in Snapchat

Snap and Perplexity AI have struck a $400 million deal that may deliver the AI search engine on to Snapchat someday in “early 2026,” the 2 firms announced. With the partnership, Perplexity’s AI search engine will probably be a distinguished a part of Snapchat’s “chat” interface so customers can “ask questions and get clear, conversational solutions drawn from verifiable sources, all inside Snapchat.”

The information was introduced alongside the corporate’s third-quarter earnings. The corporate mentioned that income from the deal — Perplexity is paying Snap $400 million for the combination — is “anticipated to start contributing” to the corporate’s backside line in 2026. In a letter to shareholders, CEO Evan Spiegel additionally hinted that Snap might pursue related partnerships with different AI firms. “This collaboration makes AI-powered discovery native to Snapchat, enhances personalization, and positions Snap as a number one distribution channel for clever brokers, laying the groundwork for a broader ecosystem of AI companions to achieve our world group,” he wrote.

Snap, like its friends, has been leaning into generative AI in recent times. The corporate has its personal LLM-powered chatbot, referred to as MyAI, which uses models from OpenAI and Google. Snap has additionally launched AI-powered lenses and creation tools, which have helped enhance its Snapchat+ subscription service.