"The Vogue Business AI Tracker keeps a record of the most important AI developments that will influence our industry and our world, each week. From venture capital investments and startup launches to product drops and regulatory updates, we'll make sure you never miss a beat when it comes to the AI news that matters. November 11, 2025 The news: Snapchat owner inks deal with Perplexity to introduce AI search."
"Why it matters: Snap Inc, the parent company of Snapchat, saw its shares surge up to 16% this week, after announcing a $400 million partnership with Open AI rival Perplexity AI, to integrate its AI search engine within the Snapchat app. From early 2026, Perplexity will appear in the Snapchat Chat interface, so that its nearly one billion monthly active users can ask questions on any topic and yield real-time conversational answers, powered by Perplexity's generative AI."
"The deal opens up a big new revenue stream for Snap, which will charge Perplexity $400 million over the course of a year to access its user base. Perplexity has recently been embroiled in a number of copyright infringement cases, including from News Corp, as well as a recent lawsuit from Amazon over the use of its AI agent to shop on customers' behalves without their consent."
Snap Inc. announced a $400 million partnership with Perplexity AI to integrate Perplexity's generative AI search into the Snapchat Chat interface beginning early 2026. The integration will allow nearly one billion monthly active users to ask questions and receive real-time conversational answers within the app. Snap will charge Perplexity $400 million over one year for access to its user base, positioning the deal as a significant new revenue stream. Perplexity is facing multiple copyright infringement cases, including complaints from News Corp and a lawsuit from Amazon. Snapchat will use Perplexity conversations to enhance personalization and drive in-app ad revenue. Pinterest is exploring the potential for agentic shopping, as noted on its Q3 earnings call by CEO Bill Ready.
#snap-perplexity-partnership #ai-search-integration #monetization--personalization #copyright-litigation
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