Snap Partners with Perplexity AI in a $400 Million Deal

Snap Inc. has announced a $400 million partnership with Perplexity AI to integrate conversational AI search directly into Snapchat, making it a native experience for its global user base starting in early 2026. The move marks a significant leap in Snap’s strategy to embed artificial intelligence across its platform.Under the partnership, Perplexity’s AI-powered search engine will be seamlessly woven into Snapchat’s chat interface, allowing users to ask questions and receive accurate, conversational answers without leaving the app. The initiative is expected to redefine how users discover information and interact within Snapchat’s ecosystem.

The announcement came alongside Snap’s third-quarter earnings report, which revealed $1.51 billion in revenue, slightly above expectations. As part of the agreement, Perplexity will compensate Snap through a mix of cash and equity, with revenue contributions expected to begin in 2026. Following the news, Snap’s shares surged by up to 25% in after-hours trading.

Snap CEO Evan Spiegel described the collaboration as a milestone in making AI-powered discovery “native to Snapchat” and positioning the platform as a major distribution hub for intelligent agents. The Perplexity integration will complement Snap’s existing chatbot, My AI, which already leverages technology from OpenAI and Google. In parallel, Snap unveiled new AI-driven features, including “AI Clips,” a tool that allows creators to generate short-form videos from text prompts. The company also announced plans to release a lighter, more advanced version of its AR glasses Spectacles through a new standalone subsidiary in 2026.

With close to a billion monthly active users, Snapchat continues to command strong engagement among younger audiences. The partnership with Perplexity reinforces Snap’s long-term vision of blending AI into everyday social experiences transforming how users search, discover, and communicate within the app.