The parent company of Snapchat, Snap disclosed that its $400 million agreement with Perplexity AI has been amicably ended.
In November 2025, Snap first unveiled the partnership with plans to bring Perplexity AI into the popular chat interface of Snapchat in early 2026, giving its users worldwide the ability to ask questions and receive answers directly within the app.
Under the agreement, Perplexity AI was expected to pay Snap $400 million in cash and equity over one year. The partnership projected to start contributing to Snap’s financial results in 2026.
At the time, Snap described the integration as an initial step toward making Snapchat a platform where leading AI companies could engage with its community in creative and trusted ways.
However, signs of uncertainty had already emerged. While the feature was tested with a limited group of users, Snap said in February that the two companies had not yet reached mutual agreement on a broader rollout.
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