Snap and Perplexity end $400 million AI search integration deal
Updated
Updated · TechCrunch · May 6
Snap and Perplexity end $400 million AI search integration deal
11 articles · Updated · TechCrunch · May 6
Snap disclosed in quarterly earnings that the companies ended the relationship in Q1 after testing Perplexity in Snapchat's Chat interface with select users.
The partnership had been expected to start contributing revenue in 2026, but Snap said its sales guidance now assumes no contribution from Perplexity.
Snap also reported 483 million daily users and 965 million monthly users, while earlier updates showed cautious guidance, a March ad hit from Middle East conflict and recent layoffs.
With its AI partnership gone, can Snap's internal strategy survive the ad market and regulatory headwinds?
Perplexity is now a $9 billion AI giant. Did Snap just lose its golden ticket or dodge a bullet?