Snap, Perplexity End $400M AI Search Deal
Snap Inc. and Perplexity AI have mutually ended a $400 million deal that would have embedded Perplexity’s AI-powered search engine directly into Snapchat, the companies confirmed Tuesday.
The partnership, first announced in November 2025, was intended to bring Perplexity’s conversational search technology to Snapchat’s more than 800 million monthly active users. Snap described the dissolution as having “amicably ended,” according to a report by TechCrunch.
Neither company has publicly detailed the specific reasons behind the deal’s collapse. The agreement would have represented one of the largest consumer distribution deals for an AI search startup, giving Perplexity a direct pipeline to Snapchat’s predominantly young user base.
The breakup comes as Perplexity has been pursuing partnerships to expand beyond its standalone app and website. The startup, valued at $9 billion in a funding round last year, has positioned itself as a challenger to Google in the AI-powered search market.
For Snap, the deal’s end raises questions about the company’s AI integration strategy. Snapchat has invested heavily in AI features, including its My AI chatbot powered by OpenAI’s technology, and the Perplexity partnership had signaled a broader push into AI-assisted search within the app.
Neither Snap nor Perplexity immediately announced alternative partnership plans.
