Snap Inc. and Perplexity AI have struck a landmark deal valued at US $400 million, setting the stage for Perplexity’s AI-driven search engine to be woven directly into Snapchat. Beginning in early 2026, the integration will allow Snapchat’s vast user base, estimated at nearly one billion, for the first time to ask questions and receive conversational, verified responses immediately within the app.
The deal was revealed alongside Snap’s third-quarter earnings, in which the company posted revenues of US $1.51 billion, slightly ahead of market expectations. Under the agreement, Perplexity will compensate Snap through a combination of cash and equity, a revenue stream slated to kick in from 2026. The announcement sent Snap’s share price soaring, climbing as much as 25% in after-hours trading.
Snap CEO Evan Spiegel characterised the collaboration as a step toward making AI-powered discovery an integral part of Snapchat’s experience, positioning the platform as a key distribution channel for intelligent agents. The Perplexity engine will complement Snapchat’s existing chatbot, “My AI,” which already leverages models from OpenAI and Google LLC.
In addition, Snap disclosed work in progress on other AI products—including “AI Clips,” a feature that enables creators to generate short videos from simple prompts and announced plans to release a next-generation AR glasses product in 2026 through a separate subsidiary.
With its massive monthly active user base and strong engagement among younger audiences, Snapchat thus emerges as a potent platform for immersive AI experiences. The partnership with Perplexity solidifies Snap’s push to embed conversational search and AI-driven discovery into everyday communication.
