Snap ends $400M Perplexity AI search integration deal
Original: Snap says its $400M deal with Perplexity ‘amicably ended’
Why This Matters
Major AI integration deal collapse highlights challenges in AI partnerships for social platforms
Snap confirmed Wednesday it has amicably ended its $400 million deal with Perplexity announced in November 2025. The partnership would have integrated Perplexity's AI search engine into Snapchat's Chat interface over one year.
Snap announced during its Q1 2026 earnings that it amicably ended its partnership with Perplexity in Q1. The deal, originally announced in November 2025, would have paid Snap $400 million in cash and equity over one year to integrate Perplexity's AI search engine into Snapchat's Chat interface. The integration was being tested with select users, but Snap said in February the companies had 'yet to mutually agree on a path to broader rollout.' Snap's sales guidance assumes no contribution from Perplexity. The company reported 5% year-over-year growth in daily active users to 483 million and monthly active users to 965 million. CEO Evan Spiegel noted the company returned to DAU growth and generated strong free cash flow in Q1.