Snapchat Teams Up with Perplexity AI: A $400M Deal for Smarter Chat
Okay, so Snapchat is making some pretty big moves. I've just heard they've struck a deal with Perplexity, an AI search engine, to bring its smarts directly into Snapchat. Basically, when you're chatting with My AI in Snapchat and ask a question, Perplexity's engine will be the one serving up the answers. It's like giving My AI a serious brain boost.
And here's the kicker: Perplexity is paying Snap a whopping $400 million in cash and equity for this partnership. That's a hefty sum! But when you think about it, it's access to Snapchat's massive user base – over 940 million people. That's a huge audience for Perplexity to get in front of. I mean, imagine how many more queries their AI engine will be handling. It's a win-win, really.
I wonder what it'll be like to use? Snap says this new integration will be rolling out early next year. So, we'll have to wait a bit to see how it all works in practice. What I'm really curious about is how seamless it will be. Will the AI answers feel natural within the chat, or will it be clunky? Only time will tell.
It's interesting that Snap won't start recording revenue from this deal until 2026. It looks like they are investing in the future, and I appreciate that.
On top of this, Snap also announced their Q3 2025 results. They pulled in $1.51 billion in revenue, which is a 10% jump from last year. Plus, they managed to cut their losses down to $104 million. Not bad at all. Oh, and their Snapchat+ subscription service now boasts over 17 million users. So, things seem to be looking up for Snap.
All in all, I think this Perplexity deal is a smart move for Snap. It's a way to enhance the My AI experience and keep users engaged. Plus, that $400 million can't hurt, right? I'm definitely looking forward to seeing how this partnership plays out and how it changes the way we use Snapchat.
Source: TechCrunch