Overview
- Perplexity will pay Snap $400 million over one year in cash and equity to integrate its source‑attributing AI answer engine into Snapchat’s Chat, with rollout starting in early 2026 and revenue contribution expected in 2026.
- Evan Spiegel said Perplexity will control chatbot responses inside Snapchat, Snap will not sell ads against those answers, and the service will receive default placement in the chat inbox.
- Shares of Snap jumped by double digits after the announcement, extending gains following its earnings release.
- Snap reported Q3 revenue of $1.51 billion (up 10%), a narrowed net loss of $104 million, and 477 million daily active users, and guided Q4 revenue to $1.68–$1.71 billion.
- Snap cautioned DAUs could dip in Q4 due to evolving regulations such as Australia’s minimum‑age law, and analysts noted Perplexity faces ongoing lawsuits over copyright and data scraping.