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

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 to begin contributing" to the company's bottom line in 2026. In a letter to shareholders, CEO Evan Spiegel also hinted that Snap could pursue similar partnerships with other AI companies. "This collaboration makes AI-powered discovery native to Snapchat, enhances personalization, and positions Snap as a leading distribution channel for intelligent agents, laying the groundwork for a broader ecosystem of AI partners to reach our global community," he wrote. Snap, like its peers, has been leaning into generative AI in recent years. The company has its own LLM-powered chatbot, called MyAI, which uses models from OpenAI and Google. Snap has also introduced AI-powered lenses and creation tools, which have helped boost its Snapchat+ subscription service. This article originally appeared on Engadget at https://www.engadget.com/social-media/snap-and-perplexity-sign-400-million-deal-to-put-ai-search-directly-in-snapchat-221101734.html?src=rss