Snap and Perplexity sign $400 million deal to put AI search directly in Snapchat

[ad_1] Snap and Perplexity AI have struck a $400 million deal that can convey the AI search engine on to Snapchat someday in "early 2026," the 2 firms introduced. With the partnership, Perplexity's AI search engine shall be a distinguished a part of Snapchat's "chat" interface so customers can "ask questions and get clear, conversational solutions drawn from verifiable sources, all inside Snapchat."

The information was introduced alongside the corporate's third-quarter earnings. The corporate mentioned that income from the deal — Perplexity is paying Snap $400 million for the combination — is "anticipated to start contributing" to the corporate's backside line in 2026. In a letter to shareholders, CEO Evan Spiegel additionally hinted that Snap may pursue related partnerships with different AI firms. "This collaboration makes AI-powered discovery native to Snapchat, enhances personalization, and positions Snap as a number one distribution channel for clever brokers, laying the groundwork for a broader ecosystem of AI companions to succeed in our world group," he wrote.

Snap, like its friends, has been leaning into generative AI in recent times. The corporate has its personal LLM-powered chatbot, referred to as MyAI, which makes use of fashions from OpenAI, Google and, quickly, Perplexity AI. Snap has additionally launched AI-powered lenses and creation instruments, which have helped increase its Snapchat+ subscription service.

Spiegel additionally teased different AI-powered updates coming to Snapchat. He mentioned the corporate is engaged on a brand new AI video technology function referred to as "AI Clips" that "will permit creators to generate brief, shareable movies from easy prompts." He didn’t say when the function would possibly launch.

Outdoors of Snapchat, Snap can be planning on launching a brand new model of its AR glasses, referred to as Specs, someday subsequent yr. Spiegel didn’t provide any new particulars in regards to the gadget, which he has beforehand promised shall be lighter-weight than the present model. He did, nevertheless, recommend the corporate was contemplating working with potential {hardware} companions. He mentioned Snap can be “placing Specs into their very own standalone, 100% owned subsidiary” to provide the corporate extra flexibility to pursue such preparations.