Snap Stock Surges 18% on $400 Million Perplexity AI Deal
The partnership will integrate Perplexity's answer engine into Snapchat's chat interface starting in early 2026.
The $400 Million Partnership
Snap Inc. announced on Thursday a $400 million partnership with the artificial intelligence startup Perplexity. Perplexity will pay Snap the sum over one year in a combination of cash and equity. The deal will integrate Perplexity's "answer-engine" directly into the Snapchat Chat interface.
The integration is planned for a rollout in early 2026. Snap said revenue recognition from the deal, which creates a new non-advertising business line, is expected to begin in 2026.
Strategic Rationale
The partnership reflects a "buy-versus-build" strategy for Snap. It allows the company to deploy a sophisticated AI search tool …
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