Snap says its $400M deal with Perplexity ‘amicably ended’
Key takeaways
- Snap no longer has a deal with Perplexity, the company revealed on Wednesday as part of its quarterly earnings report.
- Snap said that the companies amicably ended the relationship in Q1 and that its sales guidance “assumes no contribution from Perplexity.
- The deal would have seen Perplexity integrated into Snapchat s Chat interface, allowing users to ask questions and receive conversational answers directly within the app.
Why this matters: a development in AI with implications for how people work, create, and decide.
Snap no longer has a deal with Perplexity, the company revealed on Wednesday as part of its quarterly earnings report. The deal, announced last November, would have seen Perplexity s AI search engine integrated directly into Snapchat. Perplexity was set to pay Snap $400 million in cash and equity over one year as part of the deal.
Snap said that the companies amicably ended the relationship in Q1 and that its sales guidance “assumes no contribution from Perplexity. When Snap announced the deal as part of its third-quarter earnings last year, it said it expected revenue from the partnership to begin contributing to its financials in 2026.
The deal would have seen Perplexity integrated into Snapchat s Chat interface, allowing users to ask questions and receive conversational answers directly within the app. Although the integration was being tested with select users, Snap said in February that the companies had yet to mutually agree on a path to a broader roll out.