Snap and Perplexity sign agreement to bring AI search directly to Snapchat

Snap, the parent company of the Snapchat app, announced Thursday that it has signed a deal with Perplexity AI to integrate its AI “response engine” into the social media app starting in early 2026. Under the deal, the AI company will pay Snap $400 million in cash and stock over one year, equivalent to about 7% of the company’s 2024 revenue.

The partnership is “the first step in Snap’s efforts to make Snapchat a platform where leading AI companies can connect with their global communities in creative and authentic ways,” the companies said in a statement.

Wall Street reacted positively to the announcement, with Snap’s stock soaring 25% after the company announced its third-quarter results.

Story continues below this ad

Snap Inc. | Reduction of staff at Snap Inc | Reduction of staff at Snap Inc. Perplexity will pay $0 million to bring its AI “response engine” within Snapchat starting in early 2026.

Snap said users will still be able to use its My AI chatbot, and the integrated Perplexity AI service will “deliver real-time answers from trusted sources and explore new topics within the app,” the companies said.

Perplexity AI’s integration into Snapchat is a win for both companies. Not only does Perplexity gain new users, but Snap also benefits from additional subscribers and increased engagement, encouraging users to spend more time on the app.

Snapchat is one of the most popular social media apps, with nearly 1 billion monthly active users. But the Santa Monica, Calif.-based company has faced headwinds as growth in its advertising platform has slowed as competition intensifies in the digital advertising market, particularly from Meta.

For Perplexity AI, a San Francisco-based company founded by Aravind Srinivas, the Snapchat integration highlights the growing acceptance of AI-powered search engines that provide direct, source-based answers to user queries. Perplexity AI competes with OpenAI’s ChatGPT and Google’s artificial intelligence-powered products. The company has gained attention through word of mouth among Silicon Valley moguls, analysts, and journalists.

Story continues below this ad

Perplexity AI has aggressively added new features and announced a series of partnerships that have significantly increased its valuation, which is now valued at approximately $20 billion.

Anuj Bhatia is a personal technology writer at indianexpress.com, actively covering smartphones, computers, games, apps, and lifestyle technology since 2011. He specializes in writing long-form feature articles and commentaries on trending technology topics. His unique interests include digging deep into vintage technology, retro gaming, and composing detailed stories at the intersection of history, technology, and popular culture. He covers major international technology conferences and product launches for the world’s largest and most valuable technology brands, including Apple, Google, and more. At the same time, we also cover a wide range of independent domestic technology startups. Before joining The Indian Express in late 2016, he was a senior tech writer at My Mobile magazine and previously held the role of reviewer and tech writer at Gizbot. Anuj holds a postgraduate degree from Banaras Hindu University. Anuj can be found on Linkedin. Email: anuj.bhatia@indianexpress.com … Read more

Source link