Snapchat AI Search Deal: Snap’s $400 Million Perplexity Partnership

Snap Inc. has announced a major artificial intelligence agreement. The parent company of Snapchat is partnering with AI search firm Perplexity.This $400 million deal will integrate Perplexity’s conversational search directly into the Snapchat app. The move signals a significant push into AI-driven features for the social platform.

Strong Quarterly Results Fuel AI Ambitions

Snap reported impressive third-quarter financial results. The company beat Wall Street expectations for both revenue and user growth.Revenue grew 10 percent to $1.51 billion. Monthly active users increased to 943 million, a 7 percent year-over-year rise.The company’s net loss narrowed substantially to $104 million. This improved financial health provides room for strategic investments like the Perplexity partnership.

A New Frontier for Social Media Search

This partnership represents a shift in how social platforms approach information discovery. Instead of traditional search bars, users may soon engage in conversations with AI.Perplexity’s technology allows for direct, conversational answers to complex questions. Integrating this into Snapchat could transform how its young user base seeks information.The deal involves both cash and stock components. Integrations are scheduled to begin early next year.

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This landmark Snapchat AI search partnership could redefine social media functionality. The $400 million investment underscores Snap’s commitment to leading the AI integration race.

Thought you’d like to know

What is Perplexity AI?

Perplexity AI is a conversational search engine. It provides direct answers to questions using natural language, similar to a chat interface.

How many people use Snapchat?

Snapchat now reaches 943 million monthly active users globally. This represents steady 7 percent year-over-year growth.

When will the AI features launch?

The Perplexity integration is scheduled to begin early next year. Snap has not provided an exact launch date yet.

How did Snap perform financially?

Snap reported $1.51 billion in Q3 revenue, beating expectations. The company showed improved financial health with a reduced net loss of $104 million.

Why is Snap making this deal?

Snap aims to make Snapchat a platform for leading AI companies. This partnership represents their first major step toward that goal.