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Perplexity to pay Snap $400M to power search in Snapchat
Snap has signed a $400M deal with Perplexity to integrate its AI search engine into Snapchat, allowing users to interact with the MyAI chatbot. The feature will launch in early 2026, and Snap reported Q3 revenue of $1.51B with a narrowed loss of $104M.
Key points
- Snap has integrated Perplexity's AI search engine into Snapchat.
- Perplexity will pay Snap $400 million in cash and equity for the integration.
- Snapchat's MyAI chatbot will utilize Perplexity's search capabilities for over 940 million users.
- The new feature will be included in the app's interface starting early next year.
- Snap expects to start recording revenue from this deal in 2026.
- For Q3 2025, Snap reported revenue of $1.51 billion, up 10% compared to last year, and a loss of $104 million.
Why it matters
- This deal reflects the growing trend of AI integration in social media platforms.
- The partnership aligns with the increasing user demand for interactive AI capabilities in applications.
- Historically, Snapchat has been iteratively improving its features to enhance user engagement, especially in AI and search functionalities.
- In 2025, many tech companies are focusing on the monetization of AI technologies through strategic partnerships.
The $400M agreement between Snap and Perplexity underscores a significant shift toward enhanced AI capabilities in social media, promising new interactive experiences for users while offering revenue growth opportunities for both companies.