Perplexity to Power Snapchat Search with $400M Deal

Snapchat and Perplexity AI Announce Strategic Partnership

Snap Inc. revealed on Thursday a definitive agreement to incorporate Perplexity’s AI search capabilities directly into the Snapchat platform.

This collaboration involves a substantial investment from Perplexity, totaling $400 million in a combination of cash and equity, directed towards Snap.

Expanding Perplexity’s Reach

The integration will provide Perplexity with access to Snapchat’s extensive user base, exceeding 940 million individuals.

Users will be able to leverage Perplexity’s AI engine to receive answers when interacting with Snap’s My AI chatbot.

Implementation and Revenue Projections

The new functionality is slated for integration into the application’s user interface in the early months of the coming year.

Snap anticipates commencing revenue recognition related to this partnership beginning in 2026.

Snap’s Q3 2025 Financial Performance

The announcement coincided with the release of Snap’s financial results for the third quarter of 2025.

The company reported a revenue of $1.51 billion, representing a 10% increase year-over-year.

Improved Financial Standing

Snap also demonstrated improved financial health, reducing its net loss to $104 million, a decrease from $153 million in the same period last year.

Growth of Snapchat+

Furthermore, the company highlighted the continued growth of its subscription service, Snapchat+, which now boasts over 17 million subscribers.

This indicates increasing user willingness to pay for premium features within the Snapchat ecosystem.