By Межа
Publication Date: 2026-05-06 22:14:00
Snap and Perplexity quietly split in Q1, derailing a planned $400 million collaboration. The move raises questions about Snap’s AI strategy and revenue outlook.
Snap announced that the agreement with Perplexity regarding the integration of their AI search engine into Snapchat is no longer in effect. The deal, announced last November, envisioned integrating Perplexity into the app itself and paying Snap 400 million dollars in cash and stock over the course of one year.
Snap said that the company “amicably ended their relationship in the first quarter” and that the revenue outlook “does not anticipate any contribution from Perplexity.”
When the deal was announced during the third-quarter report of the previous year, the company said that revenues from the partnership would begin to flow in 2026.
Under the deal, Perplexity was to be integrated into Snapchat’s chat interface, enabling users to ask questions and receive conversational answers directly in the app. Although the integration was tested with selected users, in February the company said it had not yet agreed on a path to broader deployment.
Reaction and financial implications
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