Snap has ended its partnership with AI search company Perplexity, the social media company disclosed on Wednesday as part of its first-quarter 2026 earnings report. The two companies “amicably ended the relationship in Q1,” Snap said, adding that its sales guidance “assumes no contribution from Perplexity.”
The deal, originally announced in November 2025 alongside Snap’s third-quarter earnings, would have seen Perplexity’s AI search engine integrated directly into Snapchat’s “Chat” interface, letting users ask questions and receive conversational answers without leaving the app. Under the terms, Perplexity was set to pay Snap $400 million in cash and equity over one year, with revenue expected to begin contributing to Snap’s financials in 2026.
The partnership showed signs of strain earlier this year. In February, Snap acknowledged that although the integration had been tested with select users, the two companies had “yet to mutually agree on a path to a broader roll out.” Perplexity did not respond to a request for comment on the deal’s end.
Despite losing the partnership, Snap reported growth in its core user metrics. Global daily active users rose 5% year-over-year to 483 million, while monthly active users grew 5% to reach 965 million. Snap attributed the gains to new features including Snap Map and its Lenses AR filters.
“In Q1, we returned to growth in daily active users, accelerated revenue growth, expanded margins, and generated strong free cash flow,” CEO Evan Spiegel said in a press release.
The news comes weeks after Snap announced in April that it was laying off roughly 16% of its global workforce — approximately 1,000 full-time employees — citing advancements in AI as a factor behind the cuts.
Source: TechCrunch