News Summary

Snap Inc. has announced a significant partnership with Perplexity AI, involving a $400 million deal that will integrate Perplexity’s AI search engine into Snapchat by early 2026. This collaboration aims to enhance Snapchat’s chat interface with conversational AI capabilities, allowing users to ask questions and receive answers from verified sources within the app. The integration is expected to contribute to Snap’s revenue starting in 2026. Snap CEO Evan Spiegel expressed that this deal positions Snapchat as a leading platform for AI-powered discovery and could pave the way for further partnerships with AI companies. In addition to AI search, Snap is working on other AI-driven features, including a video generation tool called ‘AI Clips’. The company is also planning to release a new version of its AR glasses, ‘Specs’, next year. Snap’s strategic move into AI aligns with its recent efforts to incorporate generative AI technology into its platform, including the use of AI-powered lenses and tools. The company reported reaching 943 million monthly active users, marking a 7% increase year over year.