Why did Snap end its deal with Perplexity?

Snap and Perplexity "amicably ended the relationship in Q1" of the current year, leading to the termination of their previously announced partnership.

What was the Perplexity AI deal with Snap supposed to do?

The deal would have integrated Perplexity's AI search engine into Snapchat's Chat interface, enabling users to ask questions and receive conversational AI-generated answers directly within the app.

Did Snapchat's user base grow despite the deal's cancellation?

Yes, Snapchat experienced user growth, with global daily active users increasing by 5% year-over-year to 483 million in the first quarter.

Snap Cancels Perplexity AI Deal: $400M Partnership Dissolved

7 May

Summary

Snap ended its $400 million AI search deal with Perplexity in Q1.
The partnership aimed to integrate Perplexity's AI into Snapchat.
Snapchat's daily active users grew 5% to 483 million in Q1.

Snap Cancels Perplexity AI Deal: $400M Partnership Dissolved

Snap confirmed in its first-quarter earnings report that its significant deal with AI search company Perplexity has been terminated. This partnership, initially announced last November, was set to integrate Perplexity's AI search engine directly into Snapchat's "Chat" interface, allowing users to receive conversational answers to their queries.

Perplexity had agreed to pay Snap $400 million in cash and equity over one year as part of the arrangement. Snap stated that the companies "amicably ended the relationship in Q1," and their current sales guidance excludes any financial contribution from Perplexity. This marks a significant shift from expectations, as Snap had previously anticipated revenue from this partnership beginning in 2026.

The social media company also reported robust user engagement, with global daily active users rising 5% year-over-year to 483 million. Snapchat's monthly active users also saw a 5% increase, reaching 965 million. CEO Evan Spiegel highlighted a return to growth in daily active users and accelerated revenue growth during the first quarter, emphasizing disciplined execution.

Earlier in April, Snap announced workforce reductions, laying off approximately 16% of its global employees, around 1,000 full-time staff, citing advancements in artificial intelligence as a reason for the cuts. Spiegel mentioned upcoming developments at AWE on June 16th, particularly concerning their "Specs" intelligent eyewear.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.

Home / Technology / Snap Cancels Perplexity AI Deal: $400M Partnership Dissolved

Snap Cancels Perplexity AI Deal: $400M Partnership Dissolved

7 May

•

Summary

Snap ended its $400 million AI search deal with Perplexity in Q1.
The partnership aimed to integrate Perplexity's AI into Snapchat.
Snapchat's daily active users grew 5% to 483 million in Q1.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.