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

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Snap mentioned on Thursday that it has signed a deal to combine Perplexity’s AI search engine immediately inside Snapchat. As a part of the deal, Perplexity pays Snap $400 million in money and fairness.

The deal offers Perplexity publicity to greater than 940 million Snapchat customers, who will get solutions from its AI engine after they ask inquiries to the corporate’s My AI chatbot.

The brand new characteristic might be built-in into the app’s interface early subsequent yr. Snap mentioned it’s going to begin recording income from this deal in 2026.

The deal was introduced alongside Snap’s Q3 2025 outcomes. The corporate reported income of $1.51 billion, up 10% from a yr earlier, although it narrowed its loss to $104 million from $153 million a yr in the past. The corporate mentioned its subscription tier, Snapchat+, now has greater than 17 million customers.

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