Snap and Perplexity End $400M Partnership Without Conflict

Thu, 07 May 2026 05:36:00 +0200

Snap Inc. announced in its quarterly earnings report that its planned $400 million partnership with Perplexity has been terminated amicably. Originally announced in November, the deal would have integrated Perplexity's AI search engine into Snapchat's Chat interface, allowing users to ask questions and receive conversational answers directly in the app. Perplexity was set to pay Snap $400 million in cash and equity over one year. While integration was tested with select users, the companies had not agreed on a broader rollout by February. Snap CEO Evan Spiegel stated that the partnership aligned with Snap's vision of enhancing content discovery through AI, but Snap remains open to future collaborations with innovative partners. Despite the termination, Snapchat continues to show user growth, reporting 483 million daily active users and 965 million monthly active users, both up 5% year-over-year. The company attributes this growth to features like Snap Map and Lenses AR filters. Snap al