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Snapchat Teams Up with Perplexity AI in $400 Million Deal

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AI startup Perplexity has made a $34.5 billion bid to buy Google's Chrome browser.
In a move widely seen as a publicity stunt, AI startup Perplexity has made a $34.5 billion bid to buy Google's Chrome browser.

Snap and Perplexity AI have struck a major $400 million deal, bringing Perplexity’s AI search engine directly into Snapchat. Users can expect this new feature to launch in early 2026. This partnership will integrate Perplexity’s AI search engine prominently into Snapchat’s “chat” section. People using Snapchat will soon be able to ask questions and receive clear, conversational answers, all sourced from verifiable information, right within the app.

Snap announced this news alongside its third-quarter earnings. The company expects the $400 million payment from Perplexity for this integration to start boosting Snap’s profits in 2026. In a letter to shareholders, CEO Evan Spiegel hinted that Snap might explore similar deals with other AI companies. Spiegel explained that this partnership makes AI-powered discovery a natural part of Snapchat, improves personalization, and positions Snap as a key channel for smart AI tools. This sets the stage for a wider range of AI partners to connect with Snapchat’s global community.

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Like many other tech companies, Snap has been embracing generative AI recently. The company already has its own AI chatbot, called MyAI, which uses OpenAI and Google technologies and will soon include Perplexity AI’s models. Snap has also rolled out AI-powered lenses and creative tools, which have helped boost its Snapchat+ subscription service.

Spiegel also gave a sneak peek at other AI-driven updates coming to Snapchat. He mentioned that the company is developing a new AI video generation feature called “AI Clips.” This feature will allow creators to generate short, shareable videos by simply typing prompts. He did not say when this feature would become available.

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Beyond Snapchat, Snap plans to launch a new version of its AR glasses, called Specs, sometime next year. Spiegel did not share new details about the device, though he previously promised it would be lighter than the current model. He did, however, suggest that Snap was thinking about working with potential hardware partners. To make it easier to pursue such arrangements, Spiegel said Snap would place Specs into its own entirely owned subsidiary.

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