By stansberryresearch.com
Publication Date: 2025-11-13 00:00:00
Snap Inc. (NYSE: SNAP), the parent company of Snapchat, is making a high-stakes move to redefine its future… and investors are taking notice.
During its third-quarter earnings call last week, Snap announced a $400 million partnership with Perplexity AI, a rising player in the artificial intelligence (“AI”) space.
The deal is about more than just tech. It marks a major strategic pivot for Snap as it looks to diversify beyond digital ads and reposition Snapchat as an AI-powered platform for Gen Z and younger users.
As Snap CEO Evan Spiegel told Bloomberg…
We certainly see a lot of opportunity to open up Snapchat to more AI partners over time. The conversational interface has become a lot more valuable with the advent of conversational AI.
Let’s take a look at the key details behind Snap’s $400 million AI deal…
Under the terms of the agreement, Perplexity AI will pay Snap $400 million over the course of a year, through a mix of cash and equity.
In exchange, Snap will integrate Perplexity’s AI search engine into the core Snapchat app by early 2026. Users will be able to ask questions and get real-time answers from verified sources without leaving the app’s familiar chat interface.
As Perplexity CEO Aravind Srinivas said:
Millions of people connect and discover the world through Snapchat. By bringing Perplexity to Snapchat, we’re able to serve that curiosity directly where it occurs.
For Snap, it’s a significant leap toward becoming an AI-enhanced social platform….
