Snap announced a deal on Thursday to integrate Perplexity’s AI search engine into Snapchat, with Perplexity paying Snap $400 million in cash and equity. This agreement provides Perplexity exposure to over 940 million Snapchat users, who will receive AI-generated answers when interacting with the My AI chatbot.
The new feature will be integrated into the application’s interface in early 2026. Snap expects to begin recording revenue from this deal in 2026.
This announcement coincided with Snap’s Q3 2025 results. The company reported revenue of $1.51 billion, marking a 10% increase year-over-year. The net loss narrowed to $104 million from $153 million in the prior year. Additionally, Snapchat+, the company’s subscription tier, now has over 17 million users.
