In a landmark deal that underscores the growing convergence of social media and artificial intelligence, Perplexity AI has agreed to pay Snap Inc. $400 million in cash and equity to integrate its advanced AI search technology directly into Snapchat. The integration will allow Snapchat’s massive user base over 940 million active users to access Perplexity’s AI-powered answers through the app’s My AI chatbot.
According to Snap, the new AI search feature will become part of Snapchat’s interface early next year, providing users with instant, conversational responses to queries within the chat experience. The company expects to begin recording revenue from the deal in 2026, highlighting the long-term strategic value of this partnership.
The collaboration was revealed alongside Snap’s Q3 2025 earnings report, which showed promising signs of recovery. Snap reported $1.51 billion in revenue, representing a 10% year-over-year increase, while its net loss narrowed to $104 million from $153 million in the same quarter last year. The company also announced that its premium subscription service, Snapchat+, has surpassed 17 million subscribers, reinforcing its position as a leading platform for Gen Z engagement and innovation.
For Perplexity AI, this partnership marks a major milestone in its quest to expand beyond standalone AI search tools and into mainstream digital platforms. By integrating with Snapchat, Perplexity gains access to one of the world’s most active mobile audiences, significantly boosting its visibility and usage. The move also positions Perplexity as a competitor to other AI-driven assistants like ChatGPT, Google Bard, and Microsoft Copilot, by embedding its search engine into a widely used social ecosystem.
Industry experts view this partnership as a win-win deal: Perplexity gains scale and data insights from billions of user interactions, while Snap enhances its app’s functionality with real-time, conversational AI search, driving user engagement and retention.
As AI becomes a defining feature of modern social media, the Snap–Perplexity deal could set a new precedent for how tech companies blend AI innovation with everyday communication reshaping how users search, chat, and discover information within their favorite apps.
