Snap and Perplexity signal $400 million deal to place AI search straight in Snapchat

Snap and Perplexity AI have struck a $400 million deal that can carry the AI search engine on to Snapchat someday in “early 2026,” the 2 corporations announced. With the partnership, Perplexity’s AI search engine shall be a outstanding a part of Snapchat’s “chat” interface so customers can “ask questions and get clear, conversational solutions drawn from verifiable sources, all inside Snapchat.”

The information was introduced alongside the corporate’s third-quarter earnings. The corporate mentioned that income from the deal — Perplexity is paying Snap $400 million for the mixing — is “anticipated to start contributing” to the corporate’s backside line in 2026. In a letter to shareholders, CEO Evan Spiegel additionally hinted that Snap might pursue related partnerships with different AI corporations. “This collaboration makes AI-powered discovery native to Snapchat, enhances personalization, and positions Snap as a number one distribution channel for clever brokers, laying the groundwork for a broader ecosystem of AI companions to succeed in our international group,” he wrote.

Snap, like its friends, has been leaning into generative AI in recent times. The corporate has its personal LLM-powered chatbot, referred to as MyAI, which uses models from OpenAI, Google and, quickly, Perplexity AI. Snap has additionally launched AI-powered lenses and creation tools, which have helped increase its Snapchat+ subscription service.

Spiegel additionally teased different AI-powered updates coming to Snapchat. He mentioned the corporate is engaged on a brand new AI video era function referred to as “AI Clips” that “will permit creators to generate quick, shareable movies from easy prompts.” He didn’t say when the function may launch.

Exterior of Snapchat, Snap can also be planning on launching a brand new model of its AR glasses, referred to as Specs, sometime next year. Spiegel didn’t provide any new particulars in regards to the machine, which he has beforehand promised shall be lighter-weight than the present model. He did, nonetheless, recommend the corporate was contemplating working with potential {hardware} companions. He mentioned Snap could be “placing Specs into their very own standalone, 100% owned subsidiary” to provide the corporate extra flexibility to pursue such preparations.

Replace, November 5, 2025, 3:08PM PT: Added extra particulars from Snap’s earnings name.