Snap has officially confirmed a significant partnership with Perplexity, agreeing to a $400 million deal aimed at integrating an advanced AI search engine into the Snapchat platform. This agreement allows Perplexity to directly reach over 940 million Snapchat users, enhancing their experience by providing AI-powered responses through the My AI chatbot feature.
The integration is set to roll out early next year, promising a seamless user experience. Snap anticipates that it will begin recognizing revenue from this collaboration starting in 2026.
This announcement coincided with Snap’s Q3 2025 financial results, where the company reported a revenue of $1.51 billion—a 10% increase from the previous year. Notably, Snap also managed to reduce its losses, recording a deficit of $104 million compared to $153 million in the same period last year. Additionally, the popular subscription service, Snapchat+, now boasts over 17 million users.
Key Highlights:
– Snap partners with Perplexity for $400 million.
– AI search features to enhance user interaction.
– Integration expected in early 2024.
– Revenue from the deal projected to start in 2026.
– Snap reports a 10% year-on-year revenue growth in Q3 2025.
