Snap no longer has a deal with Perplexity, the company revealed Wednesday as part of its deal quarterly earnings report. The deal, announced last November, would see Perplexity’s AI search engine integrated directly into Snapchat. Perplexity was to pay Snap $400 million in cash and equity over a year as part of the deal.
Snap said the companies “amicably ended the relationship in Q1” and that its sales guidance “does not assume any input from Perplexity.” When Snap announced the deal as part of its third-quarter earnings last year, it said it expected revenue from the partnership to start contributing to its bottom line in 2026.
The deal would have integrated Perplexity into Snapchat’s “Chat” interface, allowing users to ask questions and receive chat answers directly within the app. Although the inclusion was under test with selected users, Snap he said in February that the companies “have yet to mutually agree on a path to broader growth.”
Snap CEO Evan Spiegel he said then of the original announcement that the deal reflected the company’s vision to use artificial intelligence to enhance discovery on Snapchat and that Snap looked forward to “working with more innovative partners in the future.”
Perplexity did not immediately respond to TechCrunch’s request for comment.
Snap revealed on Wednesday that Snapchat’s global daily active users (DAU) grew 5% year over year to 483 million, while monthly active users (MAU) also increased 5% to 965 million. The company attributed the growth to new features across the app, including Snap Map and Lens AR filters.
“In Q1, we returned to daily active user growth, accelerated revenue growth, expanded margins and generated strong free cash flow,” Spiegel said in a press release. “We remain focused on disciplined execution as we invest in our specifications and long-term opportunity in smart glasses, and look forward to sharing more at AWE on June 16.”
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Snap said in April it was laying off about 16% of its global workforce, affecting about 1,000 full-time workers, citing advances in artificial intelligence for the cuts.
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