Perplexity AI has agreed to pay Snap $400 million to become the default AI search engine within Snapchat’s chat platform, starting January 2026. This strategic partnership will integrate Perplexity’s advanced conversational AI capabilities directly into Snapchat’s chat interface, enabling users to ask questions and receive instant, context-aware answers. The deal comprises cash and equity payments spanning one year, marking a significant revenue stream for Snap beyond advertising.
Snapchat, with over 940 million monthly active users, will leverage Perplexity’s AI to enhance user engagement by providing seamless access to AI-powered search within its popular My AI chatbot. The agreement highlights Snap’s push into generative AI, expanding its service offerings and positioning it competitively in the evolving social media and AI landscape. Snap plans to start recognizing revenue from this deal in 2026, signaling robust growth potential.
This deal underscores two key trends: the increasing integration of AI technologies in social platforms and the monetization of AI-powered services outside traditional ad models. While the partnership advances user experience on Snapchat, it also represents Snap’s strategic diversification amid intensifying competition in social media. For Perplexity, the deal significantly scales its reach, embedding its AI search in a major global platform.
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