Perplexity AI in Chats: Snapchat’s $400 Million Deal

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In a move that could transform how people chat and search online, Snapchat’s parent, Snap Inc., has announced Perplexity AI in chats. This is a major partnership with Perplexity AI. The deal, valued at around $400 million, will bring Perplexity’s AI-powered answer engine directly into Snapchat’s chat interface. Users will soon be able to ask questions and receive conversational, fact-based replies without leaving the app.

Perplexity AI in Chats: What the deal brings and key specs?

Perplexity AI in Chats

Snap Inc. and Perplexity AI plan to roll out the integration in early 2026. So, here are the highlights of Perplexity AI in Chats:

  • Partnership value: $400 million, paid over about one year via cash and equity.
  • Feature: Perplexity’s “answer engine” will allow Snapchat users to ask questions and get responses sourced from credible information, staying inside the chat.
  • Revenue from the deal is expected to begin in 2026.
  • Snapchat will retain its existing chatbot offering while adding Perplexity as an enhanced search/answer option.
https://twitter.com/AlphaSenseInc/status/1986214984074805448

Why does this matter?
For Snap, the move strengthens its appeal to younger users who prefer messaging and quick answers, and helps it compete more effectively against rivals such as TikTok and Instagram. For Perplexity AI, the tie-up gives access to Snapchat’s nearly 1 billion monthly users and positions it in front of a next-generation audience.

What to watch?
As with all big tech partnerships, execution will be key. Snap will need to integrate the AI smoothly, ensure user trust, and maintain privacy standards. The rollout in early 2026 offers time to refine the feature, but also opens a window where expectations build. Meanwhile, financial results show Snap is improving: it reported a 10 % revenue rise in Q3 and narrowed its losses, which may give it more room to support new initiatives.

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In short, the integration of Perplexity AI into Snapchat looks like a strategic bet that personal, conversational search inside chats could become a major feature of social messaging.

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