"Under the agreement, Perplexity will pay Snap $400 million over one year through a combination of cash and equity as the AI-powered answer engine achieves global rollout. Starting in early 2026, Perplexity will appear in Snapchat's popular Chat interface, allowing the platform's nearly 1 billion monthly active users to ask questions and receive conversational answers drawn from verifiable sources. This integration will complement Snap's existing My AI chatbot, with Perplexity serving as an answer engine that helps users find real-time information from credible sources."
"Snap Inc. ( SNAP) shares surged 18% in premarket trading on Thursday, November 6, 2025, following the announcement of a landmark $400 million partnership with AI startup Perplexity. The deal marks the first large-scale integration of an external AI partner directly into Snapchat and represents a strategic move to enhance the platform's AI capabilities. Trading at $8.73 in premarket hours as of 8:52 AM EST, the stock jumped from its previous close of $7.30."
"The partnership underscores Snap's growing role as a trusted platform for AI partners to reach a large, engaged, mobile-native audience. With over 943 million monthly active users and more than 75% of 13-34-year-olds in over 25 countries using Snapchat, the platform offers AI companies a privacy-safe way to reach hundreds of millions of people who already communicate through chat daily."
Snap formed a $400 million, one-year partnership with AI startup Perplexity that will integrate Perplexity's answer engine into Snapchat's Chat interface. Perplexity will pay Snap in cash and equity as the AI feature rolls out globally, appearing in early 2026 for nearly 1 billion monthly active users. The integration will complement Snap's My AI chatbot by providing conversational answers drawn from verifiable sources and real-time information. The deal positions Snapchat as a privacy-safe distribution platform for AI partners and targets user growth and new revenue streams starting in 2026 beyond traditional advertising. The stock jumped 18% in premarket trading on the news.
Read at TalkMarkets
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