Snap Terminates $400 Million AI Search Partnership With Perplexity

Story Summary
Snap has officially ended its $400 million partnership with AI search engine Perplexity, a deal originally intended to integrate conversational AI directly into the Snapchat interface. Announced last November, the agreement was set to provide Snap with cash and equity over one year, but the companies failed to reach a consensus on a broader rollout following initial testing. Snap confirmed the amicable dissolution in its Q1 2026 earnings report, noting that its current sales guidance excludes any contribution from the venture. Despite the collapse of this high-profile AI integration, Snap reported a 5% year-over-year increase in daily active users to 483 million, as CEO Evan Spiegel pivots the company’s focus toward intelligent eyewear and long-term hardware development.





