Snapchat to integrate Perplexity AI search engine via $400M partnership
Snap has entered a $400 million agreement with Perplexity to make its AI search engine the default search solution within Snapchat, targeting a full rollout in 2026. The agreement, a mix of cash and equity, will bring Perplexity’s technology to over 940 million Snapchat users worldwide.
Beginning in early 2025, Perplexity’s AI engine will integrate into Snapchat’s existing My AI chatbot, providing real-time, sourced answers within the app. Users will keep access to the current chatbot features while gaining web search capabilities.
Snap will start recognizing revenue from the partnership once the feature launches in 2026. Snap CEO Evan Spiegel also hinted that similar AI partnerships could follow.
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External links
- Snap and Perplexity Partner to Bring Conversational AI Search to SnapchatSnap • Official source
- Snap partners with Perplexity AI in a $400 million deal to bring AI search to Snapchat by 2026THE DECODER
- Snap Shares Soar on $400 Million Perplexity AI DealThe Wall Street Journal
- Perplexity to pay Snap $400M to power search in SnapchatTechCrunch
- Snap's Perplexity deal is an effort to diversify revenue as ad trends weaken: analystsSeeking Alpha
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Comments
Smart move. Just let Perplexity pays for the cost of AI. Snap doesn't have the cash to create it's own anyway.