Snap, the parent company of the Snapchat app, said on Thursday that it has signed a deal with Perplexity AI to integrate its AI “answer engine” into the social media app starting in early 2026. Under the agreement, the AI company will pay Snap $400 million over a year in a mix of cash and equity, an amount that represents about 7 per cent of the social media company’s 2024 sales.
The partnership represents “a first step in Snap’s effort to make Snapchat a platform where leading AI companies can connect with its global community in creative and trusted ways,” the two companies said in their announcement.
Wall Street reacted positively to the announcement, as Snap’s shares climbed 25 per cent after the company released its third-quarter earnings.
Perplexity will pay 0 million to put its AI “answer engine” inside Snapchat starting in early 2026.
Snap notes that users will still be able to engage with the company’s My AI chatbot, the integrated Perplexity AI service will provide them with “real-time answers from credible sources and explore new topics within the app,” the companies said.
The integration of Perplexity AI into Snapchat is a win for both companies. Not only does Perplexity gain new users, but Snap also benefits from additional subscribers and higher engagement, encouraging users to spend more time in the app.
Snapchat has been one of the most popular social media apps, amassing nearly 1 billion monthly active users. However, the Santa Monica, California–based company has faced headwinds due to slowing growth in its advertising platform amid an increasingly competitive digital advertising market, particularly against Meta.
For Perplexity AI, the San Francisco–based company founded by Aravind Srinivas, the integration into Snapchat highlights the growing acceptance of its AI-powered search engine, which provides direct, sourced answers to user queries. Perplexity AI competes with OpenAI’s ChatGPT and Google’s artificial intelligence–powered products. The company has gained traction among Silicon Valley’s bigwigs, analysts, journalists through word of mouth.
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Perplexity AI has been aggressive in adding new features and announcing a series of partnerships that have driven a massive surge in its valuation, which now stands at around $20 billion.
Anuj Bhatia is a seasoned personal technology writer at indianexpress.com with a career spanning over a decade. Active in the domain since 2011, he has established himself as a distinct voice in tech journalism, specializing in long-form narratives that bridge the gap between complex innovation and consumer lifestyle.
Experience & Career: Anuj has been a key contributor to The Indian Express since late 2016. Prior to his current tenure, he served as a Senior Tech Writer at My Mobile magazine and held a role as a reviewer and tech writer at Gizbot. His professional trajectory reflects a rigorous commitment to technology reporting, backed by a postgraduate degree from Banaras Hindu University.
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Anuj is a trusted voice in the industry, recognized for his ability to de-jargonize trending topics and provide context to rapid technological advancements. His authority is reinforced by his on-ground presence at major international tech conferences and his nuanced approach to product reviews. By balancing coverage of the world's most valuable tech brands with emerging startups, he offers a holistic and objective view of the global technology landscape.
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Perplexity will pay 0 million to put its AI “answer engine” inside Snapchat starting in early 2026.
