Perplexity to pay Snap $400M to power search in Snapchat

In a significant move for social media and artificial intelligence, Snap has announced a collaboration with Perplexity to embed the latter's advanced AI search engine into Snapchat. This partnership entails a substantial investment from Perplexity, amounting to $400 million in a combination of cash and equity. The integration is set to offer Snapchat's vast user base—over 940 million users—access to intelligent answers via the My AI chatbot. Users will be able to pose questions and receive responses powered by Perplexity's technology, enhancing the app's functionality. The rollout of this innovative feature is expected to take place in early 2024. Snap also revealed that it anticipates recognizing revenue from this deal starting in 2026. The announcement coincided with Snap's Q3 2025 financial results, where the company reported a revenue increase to $1.51 billion, marking a 10% rise compared to the previous year. Additionally, Snap has narrowed its losses to $104 million, down from $153 million a year prior. The platform's subscription service, Snapchat+, has notably surpassed 17 million users, showcasing its growing popularity among its user base.