Snap Inc. announced on Thursday a strategic partnership to integrate Perplexity’s AI-driven search engine directly into Snapchat, a move fueled by a $400 million agreement involving both cash and equity payments from Perplexity to Snap.
Expanding AI Reach to 940 Million Users
This high-stakes collaboration provides Perplexity with immediate access to Snapchat’s massive global user base, which currently exceeds 940 million active users. By embedding its AI engine into Snapchat’s “My AI” chatbot, Perplexity will now deliver real-time, conversational search results directly to users within the app’s ecosystem.
Rollout Timeline and Financial Impact
The integration is slated to go live in the app’s interface early next year. While the partnership marks a significant shift in Snap’s AI strategy, the company clarified that it expects to begin recording revenue stemming from this deal starting in 2026.
Snap’s Q3 2025 Performance Overview
The partnership announcement coincided with the release of Snap’s Q3 2025 financial results. The company reported a total revenue of $1.51 billion, representing a 10% year-over-year increase. Despite ongoing investments in AI and infrastructure, Snap successfully narrowed its quarterly losses to $104 million, an improvement from the $153 million loss reported during the same period last year. Additionally, the company highlighted the growth of its premium subscription tier, Snapchat+, which has now surpassed 17 million paying users.
