Perplexity has just made one of its boldest moves yet. The AI search company is paying $400 million in cash and equity to integrate its technology into Snapchat, turning the social app into a massive AI-powered search engine. With Snapchat boasting nearly 940 million potential users, the deal is as strategic as it is expensive.
The Deal Breakdown
Snapchat confirmed that it has signed the agreement to integrate Perplexity’s AI search engine directly within its platform. This will allow users to ask questions through My AI, Snapchat’s built-in chatbot, and receive answers powered by Perplexity’s AI engine.
The new feature is expected to be integrated into Snapchat’s interface early next year, while Snap will start recording revenue from the partnership in 2026. For Perplexity, the deal is about more than revenue; it provides instant exposure to nearly a billion users, an easy way to attract people to a standalone app.
Snap’s Q3 Numbers and Growth
The announcement came alongside Snap’s Q3 2025 results. The company reported revenue of $1.51 billion, a 10% increase year-over-year, and narrowed its losses to $104 million from $153 million a year ago. Its Snapchat+ subscription tier now boasts over 17 million users, indicating that premium features are gaining popularity.
By integrating Perplexity’s AI, Snapchat strengthens its platform while keeping development costs down, giving users an enhanced experience without the need to build a sophisticated search engine in-house.
The Strategic Play
This partnership highlights the real value of AI in social platforms: instant access to a massive user base and embedded relevance. By embedding its search engine directly into Snapchat, Perplexity can accelerate growth and awareness, while Snapchat enhances its AI capabilities for daily interactions.
Both companies are betting that users will embrace AI as part of their routine communication and search habits. With the rollout scheduled for early next year, investors and users alike will soon see whether the gamble pays off.
For more updates, analysis, and stories on tech and innovation, subscribe to Nxtbox on Substack to stay ahead
