Snap and Perplexity AI have struck a $400 million deal that can deliver the AI search engine straight to Snapchat someday in “early 2026,” the two corporations announced. With the partnership, Perplexity’s AI search engine can be a distinguished 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 firm’s third-quarter earnings. The corporate stated that income from the deal — Perplexity is paying Snap $400 million for the integration — is “anticipated to start contributing” to the firm’s backside line in 2026. In a letter to shareholders, CEO Evan Spiegel additionally hinted that Snap might pursue comparable 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 attain our international neighborhood,” he wrote.
Snap, like its friends, has been leaning into generative AI lately. The corporate has its personal LLM-powered chatbot, known 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 enhance its Snapchat+ subscription service.
Spiegel additionally teased different AI-powered updates coming to Snapchat. He stated the firm is working on a brand new AI video technology characteristic known as “AI Clips” that “will enable creators to generate brief, shareable movies from easy prompts.” He didn’t say when the characteristic may launch.
Outdoors of Snapchat, Snap is additionally planning on launching a brand new model of its AR glasses, known as Specs, sometime next year. Spiegel didn’t supply any new details about the machine, which he has beforehand promised can be lighter-weight than the present model. He did, nevertheless, recommend the firm was contemplating working with potential {hardware} companions. He stated Snap can be “placing Specs into their very own standalone, 100% owned subsidiary” to give the firm extra flexibility to pursue such preparations.
Replace, November 5, 2025, 3:08PM PT: Added extra details from Snap’s earnings name.
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