Snap And Perplexity AI Seal $400 Million Deal To Bring AI Search Directly To Snapchat

Snap Inc. has entered into a landmark $400 million agreement with Perplexity AI to integrate the latter’s advanced AI search engine directly into Snapchat. The collaboration, set to roll out in early 2026, will make AI-driven search a seamless part of the social media app’s chat experience.

According to both companies, the integration will allow Snapchat users to “ask questions and get clear, conversational answers drawn from verifiable sources, all within Snapchat.” This move marks one of the most significant steps yet in Snap’s growing investment in artificial intelligence technology.

The deal was revealed alongside Snap’s third-quarter earnings report. The company confirmed that revenue from the partnership—funded by Perplexity’s $400 million payment—will begin contributing to Snap’s financial results in 2026.

AI Partnership to Power Smarter Discovery on Snapchat

In a letter to shareholders, Snap CEO Evan Spiegel highlighted the long-term vision behind the collaboration, noting its potential to reshape user engagement on the platform.

“This collaboration makes AI-powered discovery native to Snapchat, enhances personalisation, 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.

The partnership could also signal more AI-driven alliances in Snap’s future, as the company looks to strengthen its position in the competitive social tech landscape.

New AI Tools and AR Ambitions on the Horizon

Snap has been steadily expanding its use of generative AI. Its in-app chatbot, MyAI, currently relies on models from OpenAI and Google, with Perplexity AI soon joining the mix.

The company has also introduced AI-powered lenses and creative tools that have boosted interest in its Snapchat+ subscription service.

Spiegel teased several upcoming innovations, including a new video generation feature called “AI Clips.” The tool will “allow creators to generate short, shareable videos from simple prompts,” though no launch date has been confirmed.

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Beyond the app, Snap is also preparing to release a new version of its augmented reality glasses, known as Specs, in 2026.

While details remain limited, Spiegel confirmed the company’s intention to make Specs a standalone subsidiary to increase flexibility for potential hardware partnerships.

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