Snap Inc. announced a partnership with AI company Perplexity to integrate conversational search capabilities directly into Snapchat. Under the agreement, Perplexity will pay Snap $400 million over one year, split between cash and equity, as the feature rolls out globally.

The integration, set to launch in early 2026, will embed Perplexity’s AI-powered answer engine into Snapchat’s Chat interface, enabling the platform’s nearly 1 billion monthly active users to ask questions and receive information from verifiable sources without leaving the app.

“Our goal is to make AI more personal, social, and fun – woven into the fabric of your friendships, Snaps, and conversations,” said Evan Spiegel, CEO of Snap Inc., in a press release. “This partnership reflects our shared vision for the power of AI to enhance discovery and connection on Snapchat.”

Perplexity CEO Aravind Srinivas emphasized the alignment with his company’s mission, stating, “Perplexity’s mission is to support the world’s curiosity. Millions of people connect and discover the world through Snapchat. By bringing Perplexity to Snapchat, we’re able to serve that curiosity directly where it occurs.”

Strategic Importance for Snap’s AI Platform

This deal represents a key step in Snap’s strategy to position Snapchat as a platform for leading AI companies to reach its global audience. According to Snap’s Q3 2025 earnings presentation, the partnership is part of a broader initiative to diversify revenue streams and accelerate growth.

The Perplexity integration is expected to complement My AI, Snap’s existing chatbot. While My AI focuses on conversational interactions, Perplexity will function as an answer engine that helps users find real-time information from credible sources.

Revenue from the partnership is expected to begin contributing to Snap’s financial results in 2026, adding to the company’s growing subscription and other revenue segment, which increased 54% year-over-year to $190 million in Q3 2025.

User Base and Engagement Growth

Snap continues to expand its user base, reporting 943 million global monthly active users in Q3 2025, up 60 million, or 7% year-over-year. Daily active users reached 477 million, up 8% from the previous year, with the strongest growth coming from markets outside North America and Europe.

“We are focused on accelerating and diversifying our revenue growth,” Snap stated in its earnings presentation, highlighting the Perplexity partnership as part of this strategy.

The deal comes as Snap reports Q3 2025 revenue of $1.51 billion, a 10% year-over-year increase, and a net loss of $104 million, improved from a $153 million loss in the same period last year.

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