Snap Inks $400 Million Deal with Perplexity AI to Power AI Search on Snapchat | Stock Surges 16%
Tds Virals Canada News: Snap Partners with Perplexity AI in a $400 Million Global Deal – In a landmark move that could redefine the future of social media and AI-powered search, Snap Inc.
the parent company of Snapchat announced a $400 million partnership with Perplexity AI Inc. to integrate the firm’s advanced AI search engine into the Snapchat platform.
The announcement, made on Wednesday, sent Snap’s shares soaring by 16% in extended trading, signaling investor confidence in the company’s AI-driven future.
According to Snap’s official statement, the deal will allow Perplexity’s conversational AI search to become a default feature inside Snapchat starting in 2026, while the platform’s existing My AI chatbot will continue to be available to users.
Snap Q3 earnings exclusive – Conversational AI is the Future, Says Snap CEO Evan Spiegel – Snap CEO Evan Spiegel emphasized that this partnership marks a pivotal moment for Snapchat’s evolution in the AI space.
We certainly see a lot of opportunity to open up Snapchat to more AI partners over time, Spiegel said in an interview.
The conversational interface has become a lot more valuable with the advent of conversational AI.
By embedding Perplexity’s AI search engine into the app, Snapchat users will soon have instant access to intelligent answers, contextual recommendations, and interactive search experiences all within the Snapchat ecosystem.
Deal Structure: Cash + Equity – Snap Q3 earnings exclusive – The $400 million agreement will be paid through a combination of cash and equity, with revenue contributions beginning in 2026.
This structure positions Snap to benefit not only from direct revenue but also from the long-term growth of Perplexity AI.
Perplexity, which has rapidly grown to over 20 million active users, offers a fast, conversational AI-based search experience that rivals tools from OpenAI and Google. However,
Snap Q3 earnings exclusive | the company is also facing multiple lawsuits from tech giants like Amazon and Reddit, who allege the startup violated their terms of service by scraping data.
Despite the controversy, Snap’s decision to back Perplexity signals a strong belief in the company’s AI technology and growth potential.
Snap’s Q3 Results: Solid Growth and Strong User Engagement – Snap Q3 earnings exclusive – The announcement coincided with Snap’s third-quarter earnings report, which showed the company’s resilience amid a challenging advertising market.
1. Revenue (Q3 2025): $1.51 billion (Analyst estimate: $1.49 billion – Snap narrowly beat projections)
2. Projected Q4 Revenue: Between $1.68 billion and $1.71 billion (Analysts forecast: $1.69 billion)
3. Daily Active Users (DAUs): 477 million — up 8% year-over-year
4. Monthly Active Users (MAUs): 943 million closing in on the 1 billion target
Snap Q3 earnings exclusive – Snap’s focus on new AI-driven features, augmented reality tools, and now AI search integration is helping it maintain strong engagement among its Gen Z and millennial user base.
Global Impact: Snapchat Becomes an AI Super App – This partnership puts Snapchat in direct competition with platforms like Meta’s WhatsApp AI, Google’s Bard, and OpenAI’s ChatGPT integrations.
By turning Snapchat into a hub for visual communication + conversational AI, Snap is aiming to create what analysts are calling the next generation of “AI Super Apps.
Snap Q3 earnings exclusive – Industry experts predict that with Perplexity’s engine built-in, Snapchat could become the first social platform to merge entertainment, messaging, and AI-powered search in one seamless experience.
Snap Q3 earnings exclusive – November
Snap’s bold $400 million alliance with Perplexity AI is more than just a partnership it’s a strategic bet on the future of conversational search and AI integration within social platforms.
With global rollout expected in 2026, users can look forward to smarter, faster, and more interactive AI experiences directly inside Snapchat.
As Snap continues its push toward AI innovation, this deal could redefine how billions of users discover information, chat, and connect online all within one app
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