Snapchat Partners with Perplexity for $400M AI-Powered Search Integration

Snap Inc. announced a significant partnership with Perplexity, a leading AI search engine provider, on Thursday, as part of its Q3 2025 earnings report. The deal will see Perplexity integrate its AI search engine directly within Snapchat, giving the platform's users access to a powerful new feature. As part of the agreement, Perplexity will pay Snap a staggering $400 million in cash and equity, marking a major coup for the social media giant. This deal will expose Perplexity's AI engine to over 940 million Snapchat users, who will be able to ask questions to the company's My AI chatbot and receive answers from Perplexity's AI search engine. The new feature is set to be integrated into the app's interface early next year. Snap's Q3 2025 results saw the company report revenue of $1.51 billion, a 10% increase from the same period last year. The company also narrowed its loss to $104 million from $153 million in the previous year. Additionally, Snap's subscription tier, Snapchat+, now boasts over 17 million users. The partnership with Perplexity marks a significant milestone for Snap, as it continues to evolve its platform to meet the changing needs of its users. The integration of Perplexity's AI search engine will provide users with a more seamless and intuitive experience, allowing them to quickly find answers to their questions. The deal also highlights the growing importance of AI in the tech industry, as companies seek to leverage the power of machine learning to drive innovation and growth. Perplexity's AI search engine is a key player in this space, and its integration with Snapchat will give it access to a vast and engaged user base. Snap's partnership with Perplexity is also a testament to the company's commitment to innovation and its willingness to collaborate with other industry leaders. As the social media landscape continues to evolve, Snap is positioning itself as a leader in the space, with a focus on providing users with a more engaging and interactive experience. Looking ahead, the integration of Perplexity's AI search engine is set to have a significant impact on the social media landscape. As users become increasingly accustomed to using AI-powered search engines, we can expect to see a shift towards more conversational and intuitive interfaces. This, in turn, will drive innovation and growth in the industry, as companies seek to leverage the power of AI to drive user engagement and revenue. Snap will start recording revenue from this deal from 2026, marking a significant milestone for the company. As the partnership with Perplexity continues to evolve, we can expect to see further innovations and advancements in the social media space. With its commitment to innovation and its willingness to collaborate with other industry leaders, Snap is well-positioned to drive growth and success in the years to come.