By @realheygotrade
Publication Date: 2026-05-07 22:23:00
Gotrade News – Snap Inc. and Perplexity have walked away from one of the most closely watched AI search partnerships of the past year, with both companies confirming that a $400 million integration deal first announced in November 2025 was quietly terminated during the first quarter of 2026. The cancellation, disclosed in Snap’s latest investor letter, removes a key strategic pillar from the social media company’s near-term AI roadmap and erases an expected revenue stream that investors had begun to price into the stock.
The partnership had been positioned as a landmark moment for Snap’s AI ambitions. Under the original terms, Perplexity’s conversational answer engine was set to become the default AI experience inside Snapchat’s Chat interface, with the startup paying Snap roughly $400 million across twelve months in a mix of cash and equity. The integration was supposed to start contributing to revenue in 2026, giving Snap a fresh monetization lever beyond its core advertising business and giving Perplexity direct access to Snapchat’s 943 million monthly active users.
Instead, the rollout never moved beyond limited testing. Select users in the Chat interface had been able to ask questions and receive AI-generated answers, but the feature stayed stuck in beta. By early 2026, both companies acknowledged in public filings that they had not agreed on a path to broader deployment, and the deal was formally unwound a few weeks later.
For investors who own SNAP shares, the…