Snap’s $400M deal with Perplexity to integrate AI search into Snapchat is dead after testing failed to lead to a broader rollout

Snap disclosed in its latest earnings report that its $400M deal with Perplexity to integrate the AI search engine directly into Snapchat is dead, with the two companies “amicably ending the relationship” earlier this year. The partnership was first announced last November with plans to make Perplexity's AI search technology a prominent part of the Snapchat app, and Snap had expected to start seeing revenue from the deal in early 2026. The feature began testing in Snapchat but was never fully rolled out, with Snap saying earlier this year that the two sides had “yet to mutually agree on a path to a broader roll out.”