Snap's $400 million deal with Perplexity is dead

Source: Engadget

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Background

Snap announced a $400 million partnership with Perplexity in November, aiming to integrate Perplexity’s AI search engine directly into Snapchat. The company projected that revenue from the feature would begin in “early 2026.” Testing of the feature started within the app, but it never reached a full rollout, according to the Snapchat help page.

Termination

In its latest earnings report, Snap disclosed that the two companies “amicably ended the relationship” earlier this year. The termination follows earlier statements that the parties had “yet to mutually agree on a path to a broader roll out,” as noted in Snap’s Q4 2025 investor letter.

Response

Perplexity did not immediately respond to a request for comment.

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