Perplexity Invests $400M in Snap to Enhance Snapchat Search
Snap has announced a significant partnership with Perplexity, an AI search company, to enhance the Snapchat experience. This collaboration involves a $400 million investment from Perplexity, which includes cash and equity.
Integration of AI Search in Snapchat
This groundbreaking deal will enable Perplexity’s AI search engine to be directly integrated within Snapchat. The integration will enhance user interaction by providing answers through the My AI chatbot.
Deal Highlights
- Investment Amount: $400 million in cash and equity
- User Exposure: Over 940 million Snapchat users
- Integration Timeline: Early next year
- Revenue Recognition: Starting in 2026
Snap’s Recent Financial Performance
Alongside the announcement of this deal, Snap shared its Q3 2025 financial results. The company reported a total revenue of $1.51 billion, marking a 10% increase compared to the prior year. Snap also reported a reduced loss of $104 million, down from $153 million a year ago.
Subscription Growth
Snap’s subscription service, Snapchat+, continues to thrive, now boasting over 17 million users. This growth indicates a positive trend for the platform amid continuous enhancements and innovative features.
Overall, this partnership with Perplexity is poised to significantly boost Snapchat’s capabilities, providing users with a cutting-edge search experience powered by AI technology.
