"Perplexity most recently was valued by VCs at $20 billion."
"Snap closed yesterday with a $12.3 billion market cap, although shares jumped 17.5% at today's open."
"In addition to the $400 million, Snap will receive a percentage of revenue from the partnership."
"The tie-up comes as [Snap] has struggled to expand its advertising business in line with expectations and move to profitability given competition from deep-pocketed rivals such as Meta, which is pouring billions of dollars into developing its own AI models."
Perplexity was valued by venture capitalists at $20 billion. Snap's market capitalization closed at $12.3 billion and its shares jumped 17.5% at the next open. Snap will receive $400 million and a percentage of revenue from the partnership. The partnership aligns an AI firm valuation with a social-media platform investment and revenue-sharing arrangement. Snap has struggled to expand its advertising business to meet expectations and to move to profitability. Competition from deep-pocketed rivals such as Meta, which is investing billions in its own AI models, is contributing to those challenges.
Read at Axios
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