Snap and Perplexity seal $400 million deal to bring AI search into Snapchat

Snap Inc. and Perplexity AI have entered into a $400 million partnership that will bring Perplexity’s AI-powered search engine directly to Snapchat in early 2026. The collaboration will allow users to ask questions and receive conversational, verified answers within Snapchat’s chat interface, marking a major step in Snap’s efforts to integrate artificial intelligence more deeply into its platform.

The deal was announced alongside Snap’s third-quarter earnings, where the company reported $1.51 billion in revenue, slightly ahead of expectations. Perplexity will pay Snap in a mix of cash and equity, with the revenue contribution expected to begin in 2026. Following the announcement, Snap’s shares rose as much as 25% in after-hours trading.

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Snap CEO Evan Spiegel described the partnership as a move to make AI-powered discovery native to Snapchat and to position the platform as a key distribution channel for intelligent agents. The integration of Perplexity will sit alongside Snap’s existing chatbot, My AI, which already uses models from OpenAI and Google.

Snap also revealed that it is developing new AI-powered tools, including a feature called “AI Clips,” which will enable creators to generate short videos from simple prompts. In addition, the company is preparing to launch a lighter and more advanced version of its AR glasses, Specs, in 2026 through a new standalone subsidiary.

With nearly a billion monthly active users and strong engagement among young audiences, Snapchat offers a powerful entry point for AI-driven experiences. The Perplexity partnership reinforces Snap’s strategy to weave AI into everyday communication, transforming the way users search, discover, and connect on the platform.