Snap Inc, the maker of Snapchat, has signed a major deal with AI search startup Perplexity, integrating its advanced AI answer engine directly into the Snapchat app, beginning in early 2026. The new partnership involves Perplexity paying Snap $400 million over a year in a mix of cash and equity. This investment is estimated to offer about 7% of Snap’s 2024 sales.

The integration aims to bring real-time AI answers to Snapchat’s one billion monthly active users (MAUs) through the app’s chat interface. While users will retain access to Snap’s existing My AI chatbot, the new Perplexity integrated search is designed to provide real-time answers, allowing users to explore new topics directly within the application.

For Snap Inc, the deal is a crucial move to counter the slowing growth in its

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