Snap Inc. announced on Thursday that it has entered into a $400 million cash-and-equity deal with Perplexity AI to integrate the startup’s AI search engine directly within Snapchat.
The integration will allow Snapchat’s My AI chatbot to deliver faster, more accurate answers using Perplexity’s search technology. With access to over 940 million users, the partnership significantly expands Perplexity’s reach, positioning it against major AI search competitors like Google and OpenAI.
The new AI search experience will launch early next year, embedded into Snapchat’s main app interface. Snap expects to begin recording revenue from the deal in 2026.
The announcement came alongside Snap’s Q3 2025 earnings report, which showed revenue of $1.51 billion, marking a 10% year-over-year increase. The company also narrowed its net loss to $104 million, down from $153 million a year earlier.
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Snap further revealed that its Snapchat+ subscription service has surpassed 17 million users, highlighting growing adoption of its premium offerings.
The deal signals Snap’s growing investment in AI-driven user experiences, as the company continues to explore new revenue streams and enhance engagement across its platform.
