Snap and Perplexity strike $400 million deal to integrate AI search in Snapchat

Snap and Perplexity have inked a $400 million deal to integrate Perplexity AI into Snapchat, enabling users to ask questions and get answers in chat.

Snap and Perplexity strike $400 million deal to integrate AI search in Snapchat
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TL;DR: Snap and Perplexity AI have signed a $400 million deal to integrate Perplexity's AI-powered search engine directly into Snapchat's chat interface, launching in early 2026. This integration aims to enhance user experience with conversational answers and boost Snap's AI ecosystem and revenue.

Snap and Perplexity AI have signed a $400 million deal to integrate the AI directly into Snapchat to introduce a new search engine to Snapchat users.

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The deal was announced during Snap's third-quarter earnings, with the company explaining that Perplexity will pay Snap $400 million for the integration into Snapchat. Notably, Perplexity will be integrated directly into Snapchat's "chat" interface, enabling users to ask questions and receive clear conversational answers.

According to Snap, users can expect Perplexity to be successfully integrated into Snapchat in "early 2026," and that Perplexity will "begin contributing" to the bottom line also in 2026.

"This collaboration makes AI-powered discovery native to Snapchat, enhances personalization, and positions Snap as a leading distribution channel for intelligent agents, laying the groundwork for a broader ecosystem of AI partners to reach our global community," said Snap CEO Evan Spiegel

In addition to Perplexity being integrated, Spiegel also said Snap is working on new AI features, such as a new AI video generation feature called "AI Clips". Users will be able to generate short, shareable videos from simple prompts with AI clips. Unfortunately, Spiegel didn't say when this feature will be rolling out to users.

Snap is also planning on launching a new version of its AR glasses called Specs, which are scheduled to launch sometime next year. Spiegel didn't mention a release date for Specs, but he did say Snap will be "putting Specs into their own standalone, 100% owned subsidiary".

"Our goal is to make AI more personal, social, and fun - woven into the fabric of your friendships, Snaps, and conversations," said Evan Spiegel, CEO, Snap Inc. "This partnership reflects our shared vision for the power of AI to enhance discovery and connection on Snapchat, and we look forward to collaborating with more innovative partners in the future."

"Perplexity's mission is to support the world's curiosity," said Aravind Srinivas, CEO, Perplexity. "Millions of people connect and discover the world through Snapchat. By bringing Perplexity to Snapchat, we're able to serve that curiosity directly where it occurs."