By Alexandra S. Levine and Kurt Wagner
Publication Date: 2025-11-06 14:40:00
The Snapchat application.
(Bloomberg) — Snap Inc. shares surged after the company announced a $400 million partnership with Perplexity AI Inc. to incorporate its AI-powered search engine into Snapchat.
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The deal gives Snap a new business line and puts the social messaging company more squarely into the mix around AI chatbots and assistants. Perplexity’s answer-engine will be integrated into Snapchat’s Chat interface beginning in 2026, according to Snap Chief Executive Officer Evan Spiegel, though the company’s existing My AI chatbot will also be available to users.
“We certainly see a lot of opportunity to open up Snapchat to more AI partners over time,” Spiegel said in an interview. “The conversational interface has become a lot more valuable with the advent of conversational AI.”
The shares jumped by as much as 18% after markets opened in New York on Thursday. The stock was down by about 32% so far this year through Wednesday’s close.
Perplexity will pay Snap a combination of cash and equity. Revenue from the partnership is expected to start contributing to results next year, Snap said in a statement. Perplexity has more than 20 million active users, but the company has also been sued by multiple other tech companies, including Amazon.com Inc. and Reddit Inc., over allegations it has violated their respective terms of service.
The partnership announcement was made alongside Snap’s third-quarter…
