Snap and Perplexity Part Ways Over AI Search Features
3Snap has officially ended its $400 million deal with Perplexity, a move that surprises many in the tech world. The partnership aimed to integrate Perplexity’s AI search engine directly into Snapchat, but things didn’t go as planned. The companies announced the breakup earlier this year, signaling a shift in Snapchat’s AI strategy.
What Was the Deal About?
Back in November, Snap revealed it was teaming up with Perplexity to bring an AI-powered search feature to Snapchat users. The plan was to embed Perplexity’s technology into the app, making it easier for users to get quick answers through AI. Snap expected to start generating revenue from this feature early in 2026.
Testing of the feature began on Snapchat, but it never made it to a full rollout. According to a help page, the AI search was only being tested and was never officially launched to all users. The partnership faced hurdles early on, with Snap mentioning that both sides had yet to agree on a plan for a broader launch.
Why Did the Partnership End?
Earlier this year, Snap disclosed that the collaboration was not working out as planned. A spokesperson for Perplexity stated that the planned feature was “not the right fit” for either company’s goals. They emphasized that both companies parted ways amicably and on confidential terms.
Despite the breakup, Perplexity remains interested in Snapchat’s platform. The spokesperson said Perplexity still values Snapchat as a way to reach audiences and plans to continue using Snap’s advertising tools. The end of this deal shows how challenging integrating new AI features can be, even with big investments.
Snapchat’s Other AI Initiatives
While the Perplexity deal is over, Snap is not abandoning AI altogether. The company recently launched “AI Sponsored Snaps,” which lets brands include AI-powered agents in users’ chats. CEO Evan Spiegel said this new feature proves chat can be monetized in a way that feels natural on Snapchat.
Spiegel also shared plans for the company’s upcoming AR glasses, the first consumer-ready version of Specs. He explained that as the way people use computers changes, wearables like Specs will become more popular. These devices could reduce how much time users spend on phones and computers, shifting more interactions to AR and AI assistants.
Snap is expected to reveal more about the new Specs at the Augmented World Expo next month in California. The company’s focus appears to be on blending augmented reality, AI, and wearables to create a more integrated user experience. This move indicates that Snap is still exploring how AI and AR can boost its platform, even if its big partnership with Perplexity didn’t work out.
What do you think?
It is nice to know your opinion. Leave a comment.