Snapchat is fundamentally reshaping its platform, announcing a deal to integrate Perplexity’s powerful AI search engine directly into the app. This partnership is not merely a feature update; it signals a multi-million-dollar move to embed advanced, conversational intelligence into the daily digital habits of a massive, young user base.
Snap’s parent company has formalised an agreement with Perplexity to bring its AI-powered answers into Snapchat’s My AI chatbot. The financial terms are startling: Perplexity will pay Snap $400 million in a combination of cash and equity. This exchange buys the AI search startup unparalleled exposure.
Perplexity gains immediate access to a phenomenal user pool, over 940 million Snapchat users. These users will receive fact-based, conversational answers from the AI engine when they engage with the existing My AI chatbot. This integration allows users to conduct searches and explore topics without ever leaving the Snapchat environment.
This feature is slated for integration into the app’s interface in early 2026.
The financial ripple effect of this deal is equally compelling. Snap expects to begin recording revenue from this partnership starting in 2026.
The announcement coincided with Snap’s release of its Q3 2025 results, showcasing the company’s solid financial momentum leading into this major AI push. The company reported revenue of $1.51 billion, marking a robust 10% increase from the previous year. Crucially, Snap dramatically narrowed its net loss, which fell from $153 million to $104 million year-over-year.
Snapchat’s subscription tier, Snapchat+, also demonstrated significant market adoption, now boasting a user base of more than 17 million users. This subscription growth shows a successful pivot toward diversified revenue streams, setting a strong financial stage for the high-stakes AI integration with Perplexity.
What does this integration mean for the future of search? Does blending sophisticated AI search with a social chat interface redefine how a generation discovers and learns about the world? Snap is clearly betting $400 million that it does.