Snapchat’s deliberate Perplexity integration is now not taking place. Snap revealed in its Q1 2026 investor letter that each firms “amicably ended the connection in Q1,” ending a $400 million cash-and-equity deal introduced final November.
The deal would have introduced Perplexity’s AI answering engine instantly into Snapchat’s Chat interface. Customers would have been capable of ask questions and get conversational, source-backed solutions with out leaving the app. Snap had earlier stated the partnership would start contributing to income in 2026, however its newest gross sales steerage now assumes no contribution from Perplexity.
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Do customers want AI search inside each chat app?
The cancellation comes at a time when tech firms are placing AI assistants throughout their apps. Meta has added Meta AI to WhatsApp, Instagram, Fb, and Messenger. Google has been constructing Gemini into Search, Android, Gmail, and different merchandise.
Snapchat appeared to be taking the identical route with Perplexity. With a whole bunch of thousands and thousands of every day customers who use the app to speak, plan, and share content material, placing in a chatbot would possibly’ve appeared like a good suggestion on paper. Nonetheless, cracks within the plan started to indicate up again in February, when the corporate introduced that it had not but mutually agreed on a broader rollout plan with Perplexity. The deal additionally raised questions round how AI search would work inside non-public messaging, particularly for youthful customers and delicate subjects.
Is Snapchat nonetheless utilizing AI?
Snapchat
The top of the Perplexity deal doesn’t imply Snapchat is stepping away from AI. The corporate just lately launched AI Sponsored Snaps, an advert format that lets manufacturers place interactive AI chatbots inside Chat. So chatbot-style conversations should still seem in Snapchat, however by advertisements as an alternative of Perplexity search.
Snap can be including extra exercise round Snap Map. Its new Place Loyalty characteristic ranks customers primarily based on how typically they go to sure areas over the previous 12 months, with Gold, Silver, and Bronze standing ranges. Snap says rankings are non-public to the person, and site sharing stays off by default.
The corporate continues to be rising. In Q1, International every day energetic customers rose 5% year-over-year to 483 million, whereas month-to-month energetic customers elevated 5% to 965 million. Snap credited development to options throughout Snap Map, Lenses, and different elements of the app.
