Snap Inc. has entered into a $400 million cash and equity agreement with Perplexity to integrate its AI search enginedirectly into Snapchat. The partnership will enable Snapchat’s My AI chatbot to deliver real-time answers powered by Perplexity’s technology to the platform’s 940 million users worldwide.
The new AI-powered search experience will launch within Snapchat’s interface in early 2026, with Snap set to begin recognizing revenue from the deal that same year. The announcement coincided with Snap’s third-quarter 2025 earnings, where the company reported $1.51 billion in revenue, a 10% year-over-year increase, and a reduction in net loss to $104 million. Snapchat+, the company’s premium subscription service, surpassed 17 million subscribers.
