TLDR
- Snap inks $400M AI deal with Perplexity to power smarter in-app search.
- Perplexity AI joins Snapchat Chat for real-time, cited Q&A answers.
- New AI chat tools to launch globally in 2026 for 943M+ Snap users.
- Snap expands beyond ads with AI-driven engagement and discovery.
- Dual AI setup blends My AI and Perplexity for smarter conversations
Snap Inc.(SNAP) shares closed at $7.30 after slipping 2.28% during regular trading on the NYSE.
Snap Inc., SNAP
The decline came the same day the company confirmed a high-profile AI partnership with Perplexity. The $400 million agreement positions Snap to expand its platform with a new AI-powered search feature starting in 2026.
Snap plans to integrate Perplexity’s answer engine directly into its widely-used Chat interface on Snapchat. The new feature will enable users to ask questions and receive clear, sourced responses inside the app. This integration signals Snap’s move to strengthen its AI presence while also boosting user engagement.
Perplexity’s rollout inside Snapchat will begin globally in early 2026, marking a long-term step in Snap’s AI roadmap. The revenue from this deal will not reflect in financials until that year. However, the announcement sets the foundation for more strategic AI partnerships going forward.
Snapchat to Embed Perplexity AI Within Chat Feature
Snap will embed Perplexity in its Chat interface, offering an advanced Q&A tool alongside its existing My AI chatbot. Perplexity will generate real-time answers sourced from credible references, improving how users explore topics within Snapchat. The tool aims to enhance engagement by offering informative interactions that complement social messaging.
Snap will continue to operate My AI, but Perplexity will act as an additional discovery engine within the platform. Messages sent to Perplexity will contribute to better personalization features within Snapchat, further enriching user experience. This dual-AI setup highlights Snap’s strategy to offer flexible tools without overwhelming the interface.
With more than 943 million monthly active users, Snap is aiming to deliver AI-powered features to a large mobile-native audience. Over 75% of 13–34-year-olds in over 25 countries actively use Snapchat. This demographic reach makes the app a valuable platform for AI service providers looking for scale.
Snap Gains $400M Commitment as Part of the Deal
Under the agreement, Perplexity will pay Snap $400 million over one year, using both cash and equity components. The payments are scheduled to begin as the global rollout of the feature starts. This deal reflects growing demand for platforms that blend communication, AI, and utility.
Snap positions itself as a trusted partner for AI companies seeking large-scale exposure in privacy-safe environments. The company highlighted its unique ability to blend personal communication with AI-driven discovery. This new revenue stream may reshape Snap’s monetization model beyond ads and lenses.
Perplexity aims to bridge traditional search with AI interfaces, offering direct, cited answers instead of web links. The integration is the first of its kind for Snap and hints at future AI collaborations. Snap continues seeking ways to embed more technology into its communication tools, staying competitive in a shifting social media landscape.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
