Snap Secures $400 Million Perplexity Partnership to Integrate AI Search into Snapchat

Snap Inks $400 Million Perplexity Deal to Add AI Search to Chat

Snap Inc. announced a $400 million partnership with Perplexity AI Inc. to distribute the firm's AI search engine to Snapchat users globally, according to a statement Wednesday. The shares surged 16% in extended trading after the news. The deal gives Snap a new business line and puts the social messaging company more squarely into the mix around AI chatbots and assistants. Perplexity's AI-powered search engine will take "default" placement inside of Snapchat beginning in 2026, according to Snap Chief Executive Officer Evan Spiegel, though the company's existing My AI chatbot will also be available to users.

Snap shares jump after $400mn deal with AI start-up Perplexity

Snap announced a $400mn deal to roll out Perplexity's artificial intelligence search engine to the social media app's users alongside bumper third-quarter earnings on Wednesday, sparking a more than 20 per cent rally in its shares. The Los Angeles-based social media group said the AI start-up would pay $400mn "over one year, through a combination of cash and equity", to feature prominently in the Snapchat app starting in 2026. "Through this integration, Perplexity's AI-powered answer engine will let Snapchatters ask questions and get clear, conversational answers drawn from verifiable sources, all within Snapchat," Snap said. The deal opens up a new stream of revenues for Snap, which is popular among younger Generation Z users for its disappearing messaging feature. Its monthly active users have grown by 7 per cent year-over-year to 943mn. Snap's shares jumped about 24 per cent following the announcement. However, the stock is down roughly 20 per cent this year inclusive of Wednesday's gains. The tie-up comes as the social media platform has struggled to grow its advertising business in line with expectations and move to profitability given competition from deep-pocketed rivals such as Meta, which is pouring billions of dollars into developing its own AI models. Snap on Wednesday also posted a 10 per cent year-on-year rise in third-quarter sales to $1.5bn, just above analysts' expectations. Its earnings benefited from restructuring and cost-efficiency efforts. Net losses stood at $104mn, compared to $153mn in the same quarter last year, beating analysts' expectations that they would grow to more than $200mn. However, the company added that while its non-US advertising business was growing, its North American ads revenue rose only 1 per cent year-on-year in the quarter. That low growth reflected large North American brands spending less. The company said this group of advertisers "remains the primary headwind to our overall revenue growth". Snap has recently confirmed it is moving the development of Spectacles, its augmented reality glasses, into a subsidiary called 'Specs', following the model of Alphabet and its self-driving car project Waymo. The company has held conversations with investors about putting more money into the division, according to people familiar with the matter which was first reported by Sources, an independent publication. However, Snap said it is not reliant on raising outside capital in order to publicly launch Specs as planned in 2026.

Snap and Perplexity sign $400 million deal to put AI search directly in Snapchat

Snap and Perplexity AI have struck a $400 million deal that will bring the AI search engine directly to Snapchat sometime in "early 2026," the two companies announced. With the partnership, Perplexity's AI search engine will be a prominent part of Snapchat's "chat" interface so users can "ask questions and get clear, conversational answers drawn from verifiable sources, all within Snapchat." The news was announced alongside the company's third-quarter earnings. The company said that revenue from the deal -- Perplexity is paying Snap $400 million for the integration -- is "expected to begin contributing" to the company's bottom line in 2026. In a letter to shareholders, CEO Evan Spiegel also hinted that Snap could pursue similar partnerships with other AI companies. "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," he wrote. Snap, like its peers, has been leaning into generative AI in recent years. The company has its own LLM-powered chatbot, called MyAI, which uses models from OpenAI and Google. Snap has also introduced AI-powered lenses and creation tools, which have helped boost its Snapchat+ subscription service.

Perplexity, Snap ink $400m deal to pump more AI into Snapchat

Perplexity will pay Snap $400m a year to appear in Snapchat's chat interface starting 2026. Snap shares jumped by more than 14pc yesterday (5 November) after the company announced a $400m-a-year deal with Perplexity to deploy the AI start-up's conversational search into Snapchat. Snap performed better than expected this past quarter, raking in $1.5bn in total revenue - up 10pc year on year. A majority of the company's revenue came from advertising, which made up $1.32bn of those earnings. The company also grew its user base over the quarter, reaching in 943m global monthly active users (MAU) on Snapchat - up 7pc when compared to the same time last year. More than 75pc of 13 to 34-year-olds in more than two dozen countries now use the app, the company said. Although, to put into perspective, its rival Instagram, recently hit 3bn MAUs. The new deal with Perplexity is seen as a way to make Snapchat the platform where AI companies can connect with its global community, Snap said in a press release. The AI start-up will be paying Snap $400m a year with cash and equity to appear in Snapchat's chat interface, enabling users to ask questions and receive conversational answers, all within the app. The feature is set to come into effect starting early 2026. "Perplexity's mission is to support the world's curiosity," said Aravind Srinivas, the CEO of 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." Snap already has an AI feature in its social media and messaging app called 'My AI', a large language model powered by OpenAI and Google's tech. "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," said Evan Spiegel, Snap's CEO. The deal comes just after Perplexity announced a separate multi-year partnership with Getty Images to display its content across Perplexity's AI search tools. The controversial start-up, which has been accused of illegally scraping content to power its AI models numerous times, was sued by Amazon this week. The online shopping giant accused the company of committing "computer fraud" and demanded that Perplexity stop allowing its AI browser agent, Comet, to make purchases for its users online. In August, the start-up's crawler was de-listed by Cloudflare as a verified bot. Cloudflare said that Perplexity was stealth crawling the websites it protects by obscuring its crawling identity in an attempt to circumvent website preferences. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Snap stock jumps on Perplexity AI partnership and better-than-expected earnings results - SiliconANGLE

Snap stock jumps on Perplexity AI partnership and better-than-expected earnings results Shares in Snap Inc. were up more than 20% in late trading today after the company announced a new deal with Perplexity AI Inc. and impressed investors with earnings and revenue beats in its fiscal third quarter. The new partnership with Perplexity will see Perplexity's artificial intelligence-powered "answer engine" directly integrated into Snapchat, giving Snapchat's community of nearly one billion monthly active users a new way to ask questions. Perplexity will appear in the chat interface of Snapchat and will allow users to ask questions and get clear, conversational answers drawn from verifiable sources. The Perplexity integration was noted as a first step in Snap's effort to make Snapchat a platform where leading AI companies can connect with its global community in creative and trusted ways. Snapchat users will still be able to chat with the existing My AI chatbot, with Perplexity joining as an answer engine that helps them find real-time answers from credible sources and explore new topics within the app. "Our goal is to make AI more personal, social and fun - woven into the fabric of your friendships, Snaps and conversations," said Evan Spiegel, chief executive officer of 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." According to Bloomberg, the deal, worth $400 million to Snap, will see Perplexity pay Snap a combination of cash and equity that will be reflected in the company's revenue beginning in 2026. On the financial side, for the quarter that ended on September 30, Snap reported an adjusted earnings per share loss of six cents, up from a loss of nine cents per share in the same quarter of 2024, on revenue of $1.506 billion, up 10% year-over-year. Both figures were ahead of a 12 cents per share loss and revenue of $1.49 billion expected by analysts. The better-than-expected figures were driven by user growth, with Snapchat reaching 943 million global monthly users in the quarter, up 60 million, or 7% year-over-year. Daily active users were up 8% year-over-year to 477 million. More users equals more advertising revenue and Snap saw direct response advertising revenue grow 8% year-over-year and purchase-related advertising grow 30% year-over-year. The quarter saw Snap launch the Imagine Lens, an Open Prompt Image Generation Lens where Snapchat users can create, edit and recreate Snaps simply by entering their own prompts. The company also launched the complimentary Lens Studio AI Assistant, an assistant that helps developers to describe a Lens concept and have AI generate, code and refine it automatically. "Our focus on performance, creativity, and simplicity is helping advertisers achieve stronger results while giving our community more ways to communicate," said Spiegel in the company's earnings report. "I'm proud of the team's progress and confident that our discipline and innovation will support durable, long-term growth." For its fiscal fourth quarter, Snap expects revenue of $169 million to $1.71 billion.

Snap beats revenue estimates on ad boost, unveils deal with Perplexity AI - The Economic Times

AI startup Perplexity will pay Snap $400 million over one year in cash and equity, with revenue contributions expected from 2026. The integration of Perplexity AI will offer verifiable answers to questions within the Snapchat app, aiming to draw more users on the social media platform and boost customer retention.Snap beat third-quarter revenue estimates on Wednesday and said it has partnered with Perplexity AI to integrate its artificial intelligence-powered search engine into Snapchat. AI startup Perplexity will pay Snap $400 million over one year in cash and equity, with revenue contributions expected from 2026. Snap shares jumped around 21% in extended trading. The deal positions Snap to better compete with larger rivals such as TikTok and Meta-owned Facebook and Instagram, which currently are the preferred destinations for advertisers thanks to their larger user base. The integration of Perplexity AI will offer verifiable answers to questions within the Snapchat app, aiming to draw more users on the social media platform and boost customer retention. Snapchat's parent has been leaning on direct-response ads, designed to prompt specific actions such as app downloads or website visits, to bolster digital advertising, even as brand-awareness campaigns show some signs of weakness. Direct response ad revenue surged 8% during the third quarter, driven by strong demand for "Pixel Purchase" and "App Purchase" ad optimizations that enable businesses to target users most likely to complete a purchase on their website or within their app. The company's third-quarter revenue rose 10% to $1.51 billion, beating analysts' average estimate of $1.49 billion, according to data compiled by LSEG. Its net loss narrowed to $104 million from $153 million a year ago. Daily active users (DAU) of Snapchat increased 8% to 477 million globally, compared with the estimate of 476.3 million. The company forecast fourth-quarter revenue of $1.68 billion to $1.71 billion, while analysts expect $1.69 billion. Snap warned that overall DAUs may decline in the fourth quarter, citing changing investment priorities and anticipated impacts from age verification and evolving regulatory landscapes. Australia's Social Media Minimum Age bill, set to take effect in December, is among the evolving regulations that Snap expects would impact user engagement. (Reporting by Jaspreet Singh in Bengaluru; Editing by Shilpi Majumdar)

Snapchat Strikes $400 Million Deal With Perplexity AI To Bring Chat-Based Search To Nearly 1 Billion Active Users - Snap (NYSE:SNAP)

Snap Inc. (NYSE:SNAP) and Perplexity AI have struck a $400 million deal that will bring the AI search engine directly to Snapchat's nearly 1 billion monthly active users sometime in early 2026. The announcement came as Snap reported better-than-expected third-quarter results and announced a $500 million stock buyback after markets closed on Wednesday. Cash-And-Stock Deal Under the agreement, Perplexity will pay Snap $400 million over one year, through a combination of cash and equity. Revenue from the partnership is expected to begin contributing in 2026, Snap said in a statement. Through the deal, Perplexity's AI-powered search engine will let Snapchatters "ask questions and get clear, conversational answers drawn from verifiable sources," all within Snapchat, the company said. CEO Evan Spiegel also hinted that Snap could pursue similar partnerships with other AI companies. "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." See also: Dow Jumps Over 200 Points: Investor Sentiment Improves, Fear & Greed Index Remains In 'Extreme Fear' Zone What's Going On With Snap Shares? Shares of the social media firm jumped over 23% in trading after the bell on Wednesday, but they are down about 35% so far this year. They had closed the previous trading session at $7.30. Daily active users (DAUs) of Snapchat increased 8% to 477 million globally by the third quarter, but the company said overall DAUs may decline in the fourth quarter, due to changing investment priorities and expected impact from age verification and evolving regulatory landscapes. Benzinga's Edge Rankings show weak overall rankings, with Momentum at the 12.8th percentile and Growth at the 31.9th percentile. While short- and medium-term trends are positive, the long-term trend remains negative. For much such data on other stocks, click here. READ NEXT: SoftBank Explored Taking Over US Chipmaker Marvell To Merge With Arm: Report Image via Shutterstock SNAPSnap Inc$8.3714.6%OverviewMarket News and Data brought to you by Benzinga APIs

Snap Reveals $400 Million Perplexity Deal and Tops Wall Street Expectations in Q3

MPA Sends Cease and Desist Letter to Instagram Over "Literally False and Highly Misleading" PG-13 Rating Snapchat owner Snap handily beat Wall Street expectations in Q3, and announced a surprise AI deal: a $400 million agreement with Perplexity that will integrate its conversational search into the app. Snap said that it now reaches 943 million monthly active users, up 7 percent year over year, as the company closes in on the billion user mark. Revenue grew 10 percent to $1.51 billion, with $182 million of Adjusted EBITDA and $93 million of free cash flow. The company reported a net loss of $104 million, a substantial improvement from the same quarter a year earlier. As for that Perplexity deal: The AI company will pay $400 million in a mix of cash and stock, and Perplexity will begin integrations early next year, with the company teasing more deals: "This is the first step in our effort to make Snapchat a platform where leading AI companies can connect with our global community in creative and trusted ways." "Our focus on performance, creativity, and simplicity is helping advertisers achieve stronger results while giving our community more ways to communicate," said Evan Spiegel, Snap's CEO. "I'm proud of the team's progress and confident that our discipline and innovation will support durable, long-term growth."

Snap Shares Jump 25% After $400 Million Perplexity AI Deal and Strong Q3 Earnings Beat

On Wednesday, November 6, 2025, Snap shares jumped 25% in after-hours trading as the company announced its $400 million partnership with Perplexity AI and reported better-than-expected third-quarter results. The collaboration demonstrates Snap's commitment to integrating AI into its main platform, which it believes will help restore user growth and advertising momentum. Under the newly announced partnership, will pay Snap $400 million over one year through a combination of cash and equity. By early 2026, as part of the collaboration, Perplexity's conversational answer engine will be integrated directly into Snapchat's chat interface. The integration will allow users to have access to real-time, reliable answers and topic exploration within , making the app's function more than just social messaging. Snap said the partnership will begin contributing to its revenue in 2026. "Perplexity's chatbot will be placed by default in our chat inbox," said Evan Spiegel, Snap's CEO. "This partnership gives us a rare opportunity to integrate powerful AI agents into our platform, helping users learn, connect, and explore seamlessly," he added. Snap also confirmed that its own My AI chatbot will remain available, complementing Perplexity's conversational capabilities.

Snap beats revenue estimates on ad boost, unveils deal with Perplexity AI

(Reuters) -Snap beat third-quarter revenue estimates on Wednesday and said it has partnered with Perplexity AI to integrate its artificial intelligence-powered search engine into Snapchat. AI startup Perplexity will pay Snap $400 million over one year in cash and equity, with revenue contributions expected from 2026. Snap shares jumped around 21% in extended trading. The deal positions Snap to better compete with larger rivals such as TikTok and Meta-owned Facebook and Instagram, which currently are the preferred destinations for advertisers thanks to their larger user base. The integration of Perplexity AI will offer verifiable answers to questions within the Snapchat app, aiming to draw more users on the social media platform and boost customer retention. Snapchat's parent has been leaning on direct-response ads, designed to prompt specific actions such as app downloads or website visits, to bolster digital advertising, even as brand-awareness campaigns show some signs of weakness. Direct response ad revenue surged 8% during the third quarter, driven by strong demand for "Pixel Purchase" and "App Purchase" ad optimizations that enable businesses to target users most likely to complete a purchase on their website or within their app. The company's third-quarter revenue rose 10% to $1.51 billion, beating analysts' average estimate of $1.49 billion, according to data compiled by LSEG. Its net loss narrowed to $104 million from $153 million a year ago. Daily active users (DAU) of Snapchat increased 8% to 477 million globally, compared with the estimate of 476.3 million. The company forecast fourth-quarter revenue of $1.68 billion to $1.71 billion, while analysts expect $1.69 billion. Snap warned that overall DAUs may decline in the fourth quarter, citing changing investment priorities and anticipated impacts from age verification and evolving regulatory landscapes. Australia's Social Media Minimum Age bill, set to take effect in December, is among the evolving regulations that Snap expects would impact user engagement. (Reporting by Jaspreet Singh in Bengaluru; Editing by Shilpi Majumdar)

Perplexity signs $400 mn deal with Snap to bring AI search to Snapchat

Snap expects revenue from this partnership to start contributing in 2026. Snap, the parent company of Snapchat, has announced a major partnership with Perplexity. Starting in early 2026, Snapchat users will be able to ask questions and get instant, reliable answers directly within the chat interface with the integrated Perplexity's AI-powered answer engine. The answers will come from verified sources and be presented in a clear, conversational way. As part of the agreement, Perplexity will pay Snap $400 million over the course of one year, using a mix of cash and equity, as the integration rolls out globally. Snap expects revenue from this partnership to start contributing in 2026. Also read: Apple to pay Google $1 bn annually to power next-gen Siri with custom Gemini AI model: Report "Perplexity's mission is to support the world's curiosity," said Perplexity CEO Aravind Srinivas. "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." Snap CEO Evan Spiegel highlighted how the deal reflects Snap's broader vision for the role of AI on its platform. "Our goal is to make AI more personal, social, and fun - woven into the fabric of your friendships, Snaps, and conversations," Spiegel said. "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." Also read: After initial hype, users ditch Arattai and switch back to WhatsApp Snapchatters will still be able to chat with the existing My AI chatbot, while Perplexity will join as an answer engine designed to deliver real-time information from credible sources and help users explore a wider range of topics within the app. Like My AI, conversations with Perplexity will also contribute to improving personalisation on Snapchat.