Snap Inc. has announced a landmark deal to integrate Perplexity‘s AI search engine directly into its Snapchat platform. The partnership, valued at $400 million in cash and equity, will see Perplexity power the social media giant’s “My AI” chatbot, fundamentally changing how users seek information within the app.
A Strategic AI Integration
Under the terms of the agreement, Perplexity will pay Snap $400 million to embed its advanced conversational AI search technology. The integration is slated to roll out to users early next year, with Snap expecting to begin recognizing revenue from the deal starting in 2026.
The announcement was made alongside Snap’s Q3 2025 financial results, which showed positive momentum. The company reported a 10% year-over-year revenue increase to $1.51 billion and narrowed its net loss to $104 million from $153 million a year prior. Snap also highlighted the growth of its subscription service, Snapchat+, which has now surpassed 17 million users.
Perplexity’s Play For Massive Scale
For Perplexity, the deal represents a massive leap in user acquisition and market penetration. By integrating with Snapchat, the AI search engine gains direct access to the platform’s vast and highly engaged user base of over 940 million people.
When Snapchat users pose questions to the “My AI” chatbot, they will now receive answers generated directly by Perplexity’s engine. This move positions Perplexity to become a household name and a significant competitor in the AI-powered information discovery space.
Impact On The MENA Tech Ecosystem
This partnership holds significant implications for the MENA region, where Snapchat boasts one of its most active and youthful user bases. With millions of users across key markets like Saudi Arabia and the UAE, the integration of a sophisticated AI search tool will directly impact how this demographic interacts with information and content.
For regional startups, this signals a major trend of embedding advanced AI capabilities into mainstream consumer applications. It sets a new benchmark for user experience and could accelerate the adoption of similar AI-powered features in locally developed social, e-commerce, and content platforms, pushing MENA’s tech companies to innovate in the conversational AI space.
About Perplexity AI
Perplexity AI is a conversational search engine that uses large language models to deliver direct, accurate answers to user queries. Founded as a challenger to traditional search giants, it provides sourced information and citations, aiming to make information discovery more efficient and trustworthy.
About Snap Inc.
Snap Inc. is a technology company that defines itself as a camera company. Its flagship product, Snapchat, is a popular social media application that allows users to share photos and videos that disappear after being viewed. The company is focused on augmented reality, ephemeral messaging, and creating interactive digital experiences.
Source: TechCrunch
