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May 6, 2026 • Aisha Malik

Snap Ends $400M Perplexity AI Search Deal

Snap Ends $400M Perplexity AI Search Deal Snap Ends $400M Perplexity AI Search Deal Snap Ends $400M Perplexity AI Search Deal

Snap says its $400M deal with Perplexity 'amicably ended'

Overview

Snap has ended its $400 million partnership with Perplexity, the company revealed in its quarterly earnings report. The deal, announced in November 2025, would have integrated Perplexity's AI search engine directly into Snapchat.

Key Details

  • Deal Value: $400 million in cash and equity over one year
  • Timeline: Announced November 2025, ended Q1 2026
  • Integration Status: Was being tested with select users but never reached broader rollout
  • Financial Impact: Snap's sales guidance "assumes no contribution from Perplexity"

What the Partnership Would Have Done

  • Integrated Perplexity into Snapchat's "Chat" interface
  • Allowed users to ask questions and receive conversational AI answers directly within the app
  • Reflected Snap's vision to use AI to enhance discovery on Snapchat

Why It Ended

  • Snap said in February 2026 that the companies had "yet to mutually agree on a path to a broader roll out"
  • The relationship ended "amicably" in Q1 2026
  • No specific reasons provided for the termination

Snap's Current Performance

  • Global DAU: 483 million (up 5% year-over-year)
  • MAU: 965 million (up 5% year-over-year)
  • Recent Layoffs: Cut 16% of workforce (~1,000 employees) in April 2026, citing AI advancements

CEO Statement

"In Q1, we returned to growth in daily active users, accelerated revenue growth, expanded margins, and generated strong free cash flow. We remain focused on disciplined execution as we invest in Specs and our long-term opportunity in intelligent eyewear." — Evan Spiegel, Snap CEO