Tags: Snapchat

Snap disclosed in its Q1 2026 investor letter that it and Perplexity AI have mutually terminated a $400 million cash‑and‑equity partnership announced last November. The deal, which would have embedded Perplexity’s answering engine into Snapchat’s Chat, will no longer contribute to Snap’s 2026 revenue outlook. While the move pauses the planned AI chatbot rollout, Snap continues to push other AI‑driven features and reports a 5 % rise in daily active users. Read more

Snap Inc. disclosed that its $400 million partnership with AI search startup Perplexity has been terminated by mutual agreement. The collaboration, announced last November, aimed to embed Perplexity’s generative search technology directly into Snapchat and generate revenue as early as 2026. Testing never progressed beyond a limited rollout, and both companies said the integration was not a fit for their product goals. Snap now highlights its AI‑Sponsored Snaps and upcoming consumer‑ready AR glasses, Specs, as the next avenues for monetizing artificial‑intelligence features. Read more