Snap and Perplexity announced Wednesday (May 6) that they have amicably ended their partnership to integrate Perplexity’s artificial intelligence-powered answer engine into Snap’s social media platform Snapchat, The Wall Street Journal (WSJ) reported Wednesday.
According to the report, Perplexity told WSJ that both companies determined that the partnership did not fit with their product goals.
“Perplexity continues to value Snapchat as a platform for reaching key audiences, remains active on the Snap platform, and plans to continue to use Snap’s advertising products,” the report said.
“As we amicably terminated our relationship in the first quarter, our revenue guidance range assumes no contribution from Perplexity,” Snap said in its first-quarter investor letter released Wednesday.
In its previous fourth-quarter investor letter released on February 4, the company said, “The scope of our first quarter revenue guidance does not include potential revenues from the Perplexity integration as we have not yet mutually agreed on a path to broader deployment.”
Snap announced the partnership in November, saying it would pay Perplexity $400 million over one year to integrate its AI-powered answer engine into Snapchat.
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The company said this is the first time it has integrated an external AI partner directly into Snapchat and is the first step in Snap’s efforts to make the app a platform for AI companies to connect with its 943 million monthly active users.
At the time, Snap said Perplexity would start appearing on Snapchat in early 2026.
Perplexity CEO Aravind Srinivas said in a Nov. 5 post on X that Perplexity will be the default AI for all Snapchat users on the Snapchat app starting January 2026, and the two companies plan to work on more projects.
Meanwhile, Snap announced in its earnings call Wednesday that its first-quarter sales reached $1.5 billion, up 12% from a year ago.
According to the company, Snapchat’s global monthly active users reached 956 million, an increase of 5% year over year, and global daily active users reached 483 million, an increase of 5%.
During the quarter, Snapchat launched a format called AI Sponsored Snaps, allowing brands to engage with Snapchat users through interactive, AI-powered conversations.
