Perplexity to pay Snap $400M to power search in Snapchat

Snap announced on Thursday that it has signed a deal to integrate Perplexity’s AI search engine directly within Snapchat. As part of the agreement, Perplexity will pay Snap four hundred million dollars in cash and equity.

This partnership provides Perplexity with exposure to more than nine hundred forty million Snapchat users. These users will receive answers from the Perplexity AI engine when they ask questions to the My AI chatbot. The new search feature is scheduled to be integrated into the app’s interface early next year.

Snap stated it will begin recording revenue from this deal starting in 2026. The announcement was made alongside Snap’s third quarter 2025 financial results. The company reported revenue of one point five one billion dollars, an increase of ten percent from the previous year. It also narrowed its loss to one hundred four million dollars from one hundred fifty three million dollars a year ago.

Additionally, the company confirmed that its subscription service, Snapchat Plus, now has more than seventeen million users.