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Snap Strikes $400 Million Deal to Bring Perplexity’s AI Answers Into Snapchat Chat in 2026

Snap signals a shift to hosting external AI on Snapchat to open a new revenue stream starting in 2026.

Overview

  • Perplexity, which says it answers over 150 million questions weekly, will pay Snap $400 million over one year in cash and equity for a rollout beginning in early 2026.
  • The integration places Perplexity’s answer engine in Snapchat’s Chat so users get sourced, conversational responses without leaving the app.
  • Snap’s My AI remains available as a separate assistant, with Perplexity added alongside it rather than replacing it.
  • Snap says the partnership will begin contributing to revenue in 2026 and the company is open to additional AI collaborations.
  • Snap shares jumped as much as 25% after Q3 results showed $1.51 billion in revenue and daily active users rising to 477 million.