Snap Inc. has announced a strategic collaboration with AI-powered search engine Perplexity. Under the agreement, Perplexity will pay Snap a $400 million sum in cash and equity.
Through this partnership, Perplexity’s advanced AI search engine will be integrated into Snapchat, offering users enhanced search functionalities through the My AI chatbot. This move is expected to provide valuable information to Snapchat’s extensive user base of over 940 million active users.
The integration of Perplexity’s AI engine into Snapchat’s interface is scheduled for early next year, with Snap anticipating revenue generation from this integration starting in 2026.
This announcement coincides with Snap’s Q3 2025 financial results, which show a 10% revenue increase year-over-year, totaling $1.51 billion. Furthermore, Snap has reduced its losses, reporting $104 million compared to $153 million in the previous year. The company also disclosed that its premium subscription offering, Snapchat+, has garnered over 17 million subscribers.
Source: TechCrunch