Snap and Perplexity Cancel AI Integration Plans | PYMNTS.com

Perplexity told WSJ that the two companies determined that the collaboration didn’t fit their product goals, according to the report.

“Perplexity continues to value Snapchat as a platform for reaching key audiences, remains active on the Snap platform, and expects to continue using Snap’s advertising products,” Perplexity said, per the report.

Snap said in a first quarter investor letter released Wednesday: “Our revenue guidance range assumes no contribution from Perplexity as we amicably ended the relationship in Q1.”

The company said in its previous, fourth quarter investor letter released Feb. 4: “Our Q1 revenue guidance range excludes any potential revenue from the Perplexity integration as we have yet to mutually agree on a path to a broader roll out.”

Snap announced the partnership in November, saying Perplexity would pay it $400 million over one year to integrate its AI-powered answer engine into Snapchat.

The company said this would mark the first integration of an external AI partner directly into Snapchat as well as the first step in Snap’s effort to make the app a platform where AI companies can connect with its 943 million monthly active…