Snap Says $400 Million Perplexity Deal Is First Step in Building Out Its AI Platform | PYMNTS.com

Snap Says 0 Million Perplexity Deal Is First Step in Building Out Its AI Platform | PYMNTS.com

By PYMNTS
Publication Date: 2025-11-06 16:43:00

Perplexity will pay Snap $400 million over one year to integrate its artificial intelligence-powered answer engine into Snapchat.

This integration marks 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 users, Snap said in a Wednesday (Nov. 5) press release.

“This partnership reflects our shared vision for the power of AI to enhance discovery and connection on Snapchat, and we look forward to collaborating with more innovative partners in the future,” Snap CEO Evan Spiegel said in the release.

In an earnings release issued Wednesday, Snap said this partnership is one of the ways in which the company is working to accelerate and diversify its revenue growth.

“We took an important step toward building out our AI platform by partnering with Perplexity AI to integrate its conversational search directly into Snapchat,” the earnings release said.

During Snap’s earnings call, which was held Wednesday, Spiegel said he believe that Snap has “a really unique opportunity ahead to help distribute AI agents through our chat interface.”

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“We’re really excited about the Perplexity partnership,” Spiegel said. “I think it sort of underscores Snapchat’s role as a messaging service and how valuable that is in the age of AI, especially because Snapchat engagement is built…