Snap and Perplexity Partner to Integrate AI Search Directly into Snapchat

Snap, the parent company of the Snapchat app, announced on Thursday that it has entered into a strategic partnership with Perplexity AI to integrate the AI company’s “answer engine” directly into Snapchat, beginning in early 2026. Under the terms of the agreement, Perplexity AI will pay Snap $400 million over one year through a combination of cash and equity, representing approximately 7% of Snap’s projected 2024 sales. The deal reflects a growing trend in the tech industry where social media platforms are collaborating with artificial intelligence firms to enhance user experiences and expand engagement.

According to the announcement, the partnership is part of Snap’s broader vision to position Snapchat as a platform where leading AI companies can connect creatively and reliably with its global community. This integration will allow Snapchat users to access real-time, credible answers to their queries via Perplexity AI, while still retaining access to Snap’s existing My AI chatbot. The move is expected to strengthen user engagement, attract new subscribers, and encourage users to spend more time within the app. Analysts and investors reacted positively to the announcement, with Snap’s shares rising 25% following the release of the company’s third-quarter earnings report.

Snapchat, headquartered in Santa Monica, California, has long been one of the most popular social media platforms, boasting nearly 1 billion monthly active users. However, the company has faced challenges in recent years due to slowing growth in its advertising platform amid increasing competition in the digital advertising market, particularly from rivals such as Meta. The integration with Perplexity AI offers a fresh avenue to boost engagement and differentiate Snapchat from competitors.

For Perplexity AI, the San Francisco–based startup founded by Aravind Srinivas, the collaboration with Snapchat marks a significant milestone in the adoption of its AI-powered search engine. Perplexity AI is designed to provide users with direct, sourced answers to queries, positioning it as a competitor to OpenAI’s ChatGPT and Google’s AI-driven products. Through this integration, Perplexity gains access to Snapchat’s vast user base, increasing visibility and adoption of its technology.

Overall, the partnership represents a mutually beneficial opportunity. Snap gains an innovative AI feature to enhance its platform, improve user retention, and attract new audiences, while Perplexity benefits from increased exposure and access to one of the world’s largest social media communities. The move underscores the growing importance of artificial intelligence in social media and reflects a broader trend of collaboration between tech giants and AI innovators to deliver smarter, more interactive experiences for users.