HomeSnap confirms $400M Perplexity deal ended amicably
Snap has ended its partnership with Perplexity, the company disclosed Wednesday during its quarterly earnings report. The agreement, originally announced in November, would have integrated Perplexity's AI search engine directly into Snapchat. Under the terms, Perplexity was to pay Snap $400 million in cash and equity over a one-year period.
Snap noted that both parties "amicably ended the relationship in Q1" and that its sales outlook "assumes no contribution from Perplexity." When Snap first announced the deal during its third-quarter earnings last year, it expected revenue from the partnership to begin impacting its financials in 2026.
Under the deal, Perplexity would have been embedded within Snapchat's "Chat" interface, enabling users to ask questions and get conversational responses directly in the app. Although the feature was being tested with a limited group of users, Snap stated in February that the companies had "yet to mutually agree on a path to a broader roll out."
Snap CEO Evan Spiegel remarked at the initial announcement that the deal reflected the company's goal of using AI to enhance discovery on Snapchat, and that Snap was eager to "collaborate with more innovative partners in the future."
Perplexity did not immediately reply to TechCrunch's request for comment.
Snap reported on Wednesday that Snapchat's global daily active users (DAU) increased 5% year-over-year to 483 million, while monthly active users (MAU) also grew 5% to reach 965 million. The company attributed this growth to new features across the app, such as Snap Map and its Lenses AR filters.
In a press release, Spiegel stated, "In Q1, we returned to growth in daily active users, accelerated revenue growth, expanded margins, and generated strong free cash flow. We remain focused on disciplined execution as we invest in Specs and our long-term opportunity in intelligent eyewear, and look forward to sharing more at AWE on June 16th."
Snap announced in April that it was laying off approximately 16% of its global workforce, affecting about 1,000 full-time employees, citing advancements in AI as the reason for the cuts.
Related article
Stripe to Acquire OpenRouter as AI Model Routing Gains Momentum
Stripe has agreed to acquire OpenRouter, an AI model-routing platform that gives developers access to hundreds of models through a single interface. The deal adds model selection and routing to Stripe’s existing work around AI usage and token-based b
Google AI Overviews Gain Ground in Search Results
According to Similarweb’s 2026 Generative AI Landscape report, Google’s AI-generated summaries appeared in 43% of US searches, a significant rise from 15% recorded a year prior.While AI Overviews present generated summaries within standard search res
Sequoia-backed Empirik raises $21M to forecast outages before they strike
Before joining Sequoia Capital in 2020 as chief digital and information officer, Avon Puri spent over a decade running infrastructure at Rubrik and VMware. Three years ago, as large language models began showing their true potential, Puri, alongside
Related Special Topic Recommendations
Design & Art
Top AI Illustration Tools: Create Editorial Scenes and Cover Art Faster
2026 Latest Top-rated AI Illustration Tools: Our curated list features the best powerfully designed tools for creating stunning editorial scenes and eye-catching cover art quickly. Each option has gone through rigorous real-world tests, offering a free vs paid comparison to help you find the perfect match for your workflow. Try these must-try solutions today to unlock your AI edge and boost your creative productivity. Explore now at XIX.AI.
10 tools
xix.ai
Education and Learning
Top AI Tutors for Exam Prep: Practice Math, Science, and English
2026 Latest Top-Rated Best AI Tutors for Exam Prep are here on XIX.AI! Our curated list features powerful game-changing tools that offer free vs paid comparison, real-world tests, and weekly updated rankings. They help boost your writing efficiency, simplify complex topic learning, and unlock your academic potential. Explore now to Discover your perfect exam prep tool and Start creating today to Unlock your AI edge!
10 tools
xix.ai
Finance
AI Budget Planning Tools for Personal Money Management
2026 Latest Best Top-Rated AI Budget Planning Tools for Personal Money Management are here on XIX.AI! This curated collection features powerful, game-changing solutions that help you conduct real-world tests, understand spending habits, and create personalized plans to boost productivity. Enjoy a free vs paid comparison along with detailed rankings. Must-try tools designed to simplify money management and unlock your AI edge. Explore now!
11 tools
xix.ai
Health & Wellness
AI Sleep Tracking Assistants: Improve Recovery with Better Bedtime Habits
2026 Latest Best Top-Rated AI Sleep Tracking Assistants curated for ultimate recovery. This fully updated weekly guide features powerful tools that deliver real-world tests, free vs paid comparison, and detailed rankings to help you find the must-try solution that boosts sleep quality and supports better bedtime habits. Explore now at XIX.AI to Unlock your AI edge.
10 tools
xix.ai
Data Analysis
AI SQL Copilots for Product and Revenue Analytics
2026 Latest Best Top-Rated AI SQL Copilots for Product and Revenue Analytics! XIX.AI has curated a powerful, game-changing collection of must-try tools that undergo real-world tests through weekly updated rankings. These tools help users boost productivity significantly by accelerating data analysis, streamlining complex queries, and generating accurate insights to drive smarter business decisions. Explore now to Discover your perfect tool for unlocking your AI edge!
14 tools
xix.ai
Education and Learning
Best AI Homework Helpers That Teach: Learn Concepts, Not Just Answers
2026 Latest Best Top-Rated AI Homework Helpers That Teach Core Concepts Not Just Answers Powerful Tools for Students Must-Try Curated List Weekly Updated Free vs Paid Comparison Real-World Tests Accurate Rankings to Help You Unlock Your Full Learning Potential Explore now to Discover your perfect tool for smarter studying.
10 tools
xix.ai
Comments (0)
0/500
Snap has ended its partnership with Perplexity, the company disclosed Wednesday during its quarterly earnings report. The agreement, originally announced in November, would have integrated Perplexity's AI search engine directly into Snapchat. Under the terms, Perplexity was to pay Snap $400 million in cash and equity over a one-year period.
Snap noted that both parties "amicably ended the relationship in Q1" and that its sales outlook "assumes no contribution from Perplexity." When Snap first announced the deal during its third-quarter earnings last year, it expected revenue from the partnership to begin impacting its financials in 2026.
Under the deal, Perplexity would have been embedded within Snapchat's "Chat" interface, enabling users to ask questions and get conversational responses directly in the app. Although the feature was being tested with a limited group of users, Snap stated in February that the companies had "yet to mutually agree on a path to a broader roll out."
Snap CEO Evan Spiegel remarked at the initial announcement that the deal reflected the company's goal of using AI to enhance discovery on Snapchat, and that Snap was eager to "collaborate with more innovative partners in the future."
Perplexity did not immediately reply to TechCrunch's request for comment.
Snap reported on Wednesday that Snapchat's global daily active users (DAU) increased 5% year-over-year to 483 million, while monthly active users (MAU) also grew 5% to reach 965 million. The company attributed this growth to new features across the app, such as Snap Map and its Lenses AR filters.
In a press release, Spiegel stated, "In Q1, we returned to growth in daily active users, accelerated revenue growth, expanded margins, and generated strong free cash flow. We remain focused on disciplined execution as we invest in Specs and our long-term opportunity in intelligent eyewear, and look forward to sharing more at AWE on June 16th."
Snap announced in April that it was laying off approximately 16% of its global workforce, affecting about 1,000 full-time employees, citing advancements in AI as the reason for the cuts.
Stripe to Acquire OpenRouter as AI Model Routing Gains Momentum
Stripe has agreed to acquire OpenRouter, an AI model-routing platform that gives developers access to hundreds of models through a single interface. The deal adds model selection and routing to Stripe’s existing work around AI usage and token-based b
Google AI Overviews Gain Ground in Search Results
According to Similarweb’s 2026 Generative AI Landscape report, Google’s AI-generated summaries appeared in 43% of US searches, a significant rise from 15% recorded a year prior.While AI Overviews present generated summaries within standard search res
Sequoia-backed Empirik raises $21M to forecast outages before they strike
Before joining Sequoia Capital in 2020 as chief digital and information officer, Avon Puri spent over a decade running infrastructure at Rubrik and VMware. Three years ago, as large language models began showing their true potential, Puri, alongside
2026 Latest Top-rated AI Illustration Tools: Our curated list features the best powerfully designed tools for creating stunning editorial scenes and eye-catching cover art quickly. Each option has gone through rigorous real-world tests, offering a free vs paid comparison to help you find the perfect match for your workflow. Try these must-try solutions today to unlock your AI edge and boost your creative productivity. Explore now at XIX.AI.
10 tools
xix.ai
2026 Latest Top-Rated Best AI Tutors for Exam Prep are here on XIX.AI! Our curated list features powerful game-changing tools that offer free vs paid comparison, real-world tests, and weekly updated rankings. They help boost your writing efficiency, simplify complex topic learning, and unlock your academic potential. Explore now to Discover your perfect exam prep tool and Start creating today to Unlock your AI edge!
10 tools
xix.ai
2026 Latest Best Top-Rated AI Budget Planning Tools for Personal Money Management are here on XIX.AI! This curated collection features powerful, game-changing solutions that help you conduct real-world tests, understand spending habits, and create personalized plans to boost productivity. Enjoy a free vs paid comparison along with detailed rankings. Must-try tools designed to simplify money management and unlock your AI edge. Explore now!
11 tools
xix.ai
2026 Latest Best Top-Rated AI Sleep Tracking Assistants curated for ultimate recovery. This fully updated weekly guide features powerful tools that deliver real-world tests, free vs paid comparison, and detailed rankings to help you find the must-try solution that boosts sleep quality and supports better bedtime habits. Explore now at XIX.AI to Unlock your AI edge.
10 tools
xix.ai
2026 Latest Best Top-Rated AI SQL Copilots for Product and Revenue Analytics! XIX.AI has curated a powerful, game-changing collection of must-try tools that undergo real-world tests through weekly updated rankings. These tools help users boost productivity significantly by accelerating data analysis, streamlining complex queries, and generating accurate insights to drive smarter business decisions. Explore now to Discover your perfect tool for unlocking your AI edge!
14 tools
xix.ai
2026 Latest Best Top-Rated AI Homework Helpers That Teach Core Concepts Not Just Answers Powerful Tools for Students Must-Try Curated List Weekly Updated Free vs Paid Comparison Real-World Tests Accurate Rankings to Help You Unlock Your Full Learning Potential Explore now to Discover your perfect tool for smarter studying.
10 tools
xix.ai
