Perplexity's AI answering system will not be available on Snapchat, after all.
Perplexity will no longer be integrated into Snapchat chats.
Snap disclosed in its Q1 2026 investor letter that it has amicably ended its partnership with Perplexity, which severed a $400 million cash-and-equity agreement announced last November.
This deal was intended to incorporate Perplexity’s AI answering engine directly into Snapchat’s Chat interface, allowing users to ask questions and receive conversational, source-backed responses without exiting the app. Although Snap previously indicated that the partnership would generate revenue beginning in 2026, its most recent sales projections no longer factor in any revenue from Perplexity.
The cancellation of this integration arrives amidst a trend of tech companies embedding AI assistants in their applications. Meta has integrated Meta AI into WhatsApp, Instagram, Facebook, and Messenger, while Google has been developing Gemini for use in Search, Android, Gmail, and other services.
Snapchat appeared to be following a similar path with Perplexity, considering its hundreds of millions of daily users who engage in communication, planning, and content sharing. However, issues with the plan became visible in February when the company announced that it had not yet reached a mutual agreement on a broader rollout with Perplexity. Additionally, there were concerns about how AI search would function in private messaging, particularly for younger audiences and sensitive subjects.
Despite the termination of the Perplexity agreement, Snapchat is not abandoning AI initiatives. Recently, the company launched AI Sponsored Snaps, an ad format that allows brands to place interactive AI chatbots within Chat. Thus, chatbot-style interactions may still occur in Snapchat, but through advertisements rather than Perplexity’s search capabilities.
Snap is also enhancing its Snap Map features. The new Place Loyalty function ranks users based on their visiting frequency to specific locations over the past year, featuring Gold, Silver, and Bronze status levels. Snap maintains that these rankings are private to the user, with location sharing turned off by default.
The company continues to grow. In Q1, the number of global daily active users rose by 5% year-over-year to 483 million, while monthly active users increased by 5% to 965 million. Snap attributes this growth to features across Snap Map, Lenses, and other sections of the app.
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