Snap and Perplexity sign $400 million deal to put AI search directly in Snapchat

Snapchat on App Store is seen in this illustration photo taken in Poland on June 29, 2024. (Photo by Jakub Porzycki/NurPhoto via Getty Images) (NurPhoto via Getty Images)

Snap and Perplexity AI have struck a $400 million deal that will bring the AI search engine directly to Snapchat sometime in "early 2026," the two companies announced. With the partnership, Perplexity's AI search engine will be a prominent part of Snapchat's "chat" interface so users can "ask questions and get clear, conversational answers drawn from verifiable sources, all within Snapchat."

The news was announced alongside the company's third-quarter earnings. The company said that revenue from the deal — Perplexity is paying Snap $400 million for the integration — is "expected ...