Snap Inc. Inks $400 Million Deal to Embed Perplexity AI in Snapchat
Snap Inc. struck a $400 million agreement with Perplexity AI to integrate its Comet conversational search engine into Snapchat, with revenue contributions to begin in 2026. The deal complements Perplexity’s pivot to enterprise subscriptions after reaching $200 million in annual recurring revenue and expands AI features for high-powered professionals.
1. Partnership Deal Details
Snap Inc. agreed a $400 million multi-year deal with Perplexity AI to integrate its Comet conversational search engine into Snapchat. The integration will enable users to receive verified, AI-generated answers directly in the app.
2. Revenue Impact Timeline
This partnership is set to begin revenue contributions in 2026, bolstering Snap’s monetization efforts as the company seeks new revenue streams. It aligns with Perplexity’s recent enterprise shift after the startup achieved $200 million in ARR by October 2025.
3. Strategic Rationale and AI Integration
Embedding Comet enhances Snapchat’s AI capabilities, targeting professional users like CEOs and doctors while expanding beyond traditional social features. The deal underscores Snap’s commitment to advanced AI-driven services to differentiate its platform.