Perplexity Strikes $400 Million Partnership with Snap to Bring AI Search to Snapchat

Perplexity AI announced a $400 million deal with Snap today, positioning its AI-powered search engine to reach nearly one billion Snapchat users starting in early 2026. The partnership, structured as cash and equity payments over one year, will integrate Perplexity’s conversational AI search capabilities directly into Snapchat’s existing chat interface.

Under the agreement, Snapchat users will be able to ask questions within the app and receive clear, conversational responses sourced from verified information without leaving the platform. The feature will complement rather than replace Snapchat’s existing My AI chatbot, which has been available since February 2023. Perplexity’s integration serves as a specialized answer engine for real-time information discovery.

Aravind Srinivas, CEO of Perplexity, stated: “Millions of people connect and discover the world through Snapchat. By bringing Perplexity to Snapchat, we’re able to serve that curiosity directly where it occurs.” The deal marks one of Perplexity’s largest commercial partnerships as the company competes with established AI search engines and conversational AI platforms.

Financial Impact and Strategic Vision

The announcement came alongside Snap’s third-quarter 2025 earnings report, which showed revenue of $1.51 billion, up 10% year-over-year and exceeding analyst expectations of $1.49 billion. Snap’s stock jumped more than 20% in after-hours trading following the dual announcement.

Snap CEO Evan Spiegel emphasized the company’s broader AI strategy: “Our goal is to make AI more personal, social, and fun – woven into the fabric of your friendships, Snaps and conversations. This partnership reflects our shared vision for the power of AI to enhance discovery and connection on Snapchat, and we look forward to collaborating with more innovative partners in the future.”

Revenue from the Perplexity partnership will begin contributing to Snap’s financial results in 2026 as the feature rolls out globally. The company reported 943 million monthly active users and 477 million daily active users in Q3 2025, representing 7% and 8% year-over-year growth respectively.

The partnership positions Snap alongside Meta and X, which have similarly integrated AI assistants into their social media platforms. Snap previously launched My AI powered by OpenAI’s technology, but the Perplexity integration adds specialized search capabilities focused on sourcing and citing credible information.

Snap also reported adjusted EBITDA growth of 38% to $182 million and provided Q4 2025 revenue guidance of $1.68 to $1.71 billion, implying 8% to 10% year-over-year growth. The company’s adjusted gross margin improved to 55% in Q3, up from 52% in Q2 and 54% in the prior year period. For businesses looking to leverage similar AI-powered features, AI tools for social media and AI marketing tools continue to expand capabilities for customer engagement and content discovery.