Snap and Perplexity Cancel AI Integration Plans

Snap and Perplexity said Wednesday (May 6) that they amicably ended a partnership that would have integrated Perplexity’s artificial intelligence-powered answer engine into Snap’s Snapchat social media platform, The Wall Street Journal (WSJ) reported Wednesday.

Perplexity told WSJ that the two companies determined that the collaboration didn’t fit their product goals, according to the report.

“Perplexity continues to value Snapchat as a platform for reaching key audiences, remains active on the Snap platform, and expects to continue using Snap’s advertising products,” Perplexity said, per the report.

Snap said in a first quarter investor letter released Wednesday: “Our revenue guidance range assumes no contribution from Perplexity as we amicably ended the relationship in Q1.”

The company said in its previous, fourth quarter investor letter released Feb. 4: “Our Q1 revenue guidance range excludes any potential revenue from the Perplexity integration as we have yet to mutually agree on a path to a broader roll out.”

Snap announced the partnership in November, saying Perplexity would pay it $400 million over one year to integrate its AI-powered answer engine into Snapchat.

The company said this would mark the first integration of an external AI partner directly into Snapchat as well as the first step in Snap’s effort to make the app a platform where AI companies can connect with its 943 million monthly active users.

At the time, Snap said Perplexity would begin appearing in Snapchat in early 2026.

Perplexity CEO Aravind Srinivas said in a Nov. 5 post on X that Perplexity would become the default AI for all Snapchat users in the Snapchat app, starting in January 2026, and that the two companies planned to work on many more projects.

Meanwhile, Snap announced in a Wednesday earnings release that the company’s first quarter revenue increased 12% year over year to reach $1.5 billion.

The company said Snapchat’s global monthly active users increased 5% year over year to reach 956 million, while its global daily active users rose 5% to reach 483 million.

During the quarter, Snapchat launched a format called AI Sponsored Snaps that lets brands engage Snapchat users through interactive, AI-powered conversations.