Snap Inc. witnessed a significant surge in its stock value following the announcement of a landmark strategic partnership with artificial intelligence leader Perplexity AI.
The cornerstone of this multi-year agreement is a substantial $400 million investment, a move that signals a major strategic pivot for the social media giant as it aggressively integrates next-generation AI capabilities directly into its platform.
This collaboration is set to fundamentally reshape how Snapchat’s global community of nearly half a billion daily users discovers information and interacts with the world.
The integration will embed Perplexity’s acclaimed answer engine natively within the Snapchat application. This initiative is designed to provide users with immediate, credible answers to their queries by drawing from authoritative, real-time sources.
Unlike the existing My AI chatbot, which focuses on conversational interaction, Perplexity will function as a powerful discovery tool, allowing users to explore new topics and verify information without ever leaving the app.
This dual-AI approach aims to make advanced, conversational AI a seamless and indispensable part of the Snapchat experience, enhancing both personalization and the platform’s utility for learning.
From a financial perspective, this deal represents a substantial and forward-looking revenue stream for Snap. The company confirmed the $400 million will be delivered over the coming year through a combination of cash and equity.
While the full revenue impact is projected to materialize in 2026, the immediate market response was overwhelmingly positive. This optimism is further bolstered by Snap’s strong third-quarter earnings, which revealed a 10% year-over-year revenue increase to $1.5 billion and steady user growth, climbing to 477 million Daily Active Users.
In a parallel move underscoring its robust financial health, Snap’s board of directors has authorized a new stock repurchase program of up to $500 million.
This initiative reflects executive confidence in the company’s long-term value and strategic direction. According to Snap CEO Evan Spiegel, the partnership with Perplexity is a direct embodiment of the company’s vision to weave AI into the very fabric of digital social interaction, making it more personal and instrumental in how users connect and discover new things. This alliance positions Snapchat not just as a messaging app, but as an emerging hub for trusted AI-driven exploration.
