Overview
- Perplexity will pay Snap $400 million over one year in cash and equity to embed its AI answer engine directly in Snapchat’s Chat interface starting in early 2026.
- Snap said Perplexity will control in‑app responses that provide conversational, source‑attributed answers, and Snap will not sell advertising against those responses.
- Evan Spiegel said the Perplexity experience will get default placement in the chat inbox, with Snap’s existing My AI assistant continuing as a separate option.
- Snap reported Q3 revenue of $1.51 billion and 477 million daily active users, topping estimates, as shares jumped double digits following the deal and results.
- Snap cautioned overall DAUs could slip in Q4 due to age‑verification and evolving regulation, while lawsuits targeting Perplexity’s data and copyright practices present additional risk.