Snap and Perplexity Secure $400M Deal for AI Chat Answers by 2026
Snap Inc. has announced a landmark partnership with Perplexity, focusing on enhancing AI capabilities within the Snapchat app. This collaboration aims to integrate Perplexity’s AI-powered answer engine into Snapchat, enabling users to ask questions and receive immediate, reliable answers.
Details of the $400M Deal
The agreement, which is valued at $400 million over the course of one year, combines cash and equity payments. Revenue from this partnership is anticipated to start impacting finances in 2026.
Integration Timeline
Beginning in early 2026, users will notice Perplexity within Snapchat’s popular Chat interface. This feature will allow nearly 1 billion monthly active users to explore a wide range of topics more effectively.
Enhancing User Experience
- Users can access clear, conversational answers sourced from credible information.
- Snapchatters can continue to utilize the existing My AI chatbot alongside Perplexity.
- Personalization features will enhance the user experience through direct interactions.
Aravind Srinivas, CEO of Perplexity, emphasized that the partnership connects curious users directly with information. Evan Spiegel, CEO of Snap Inc., stated the collaboration showcases how AI can enrich interactions and discoveries on Snapchat.
Market Impact
With over 943 million active users, Snapchat serves a significant demographic, particularly appealing to over 75% of users aged 13–34 across more than 25 countries. This partnership positions Snapchat as a prime platform for AI integration.
About Snap Inc. and Perplexity
Snap Inc. focuses on leveraging technology, particularly through innovative camera features, to enhance communication and user engagement. Perplexity, founded in 2022, aims to merge traditional search functionalities with AI, successfully answering over 150 million questions weekly.
This partnership highlights pivotal advancements in AI integration into social media, aiming for improved user engagement and information accessibility within the Snapchat ecosystem.
