Snap says its $400M deal with Perplexity 'amicably ended'
TechCrunch • • business
Key Points:
- Snap has ended its deal with Perplexity, which was announced last November and involved integrating Perplexity’s AI search engine into Snapchat’s Chat interface, with Perplexity expected to pay Snap $400 million over one year.
- The companies "amicably ended the relationship" in Q1, and Snap’s sales guidance no longer includes any revenue from Perplexity, which had been expected to contribute starting in 2026.
- The AI integration was tested with select users but did not move to a broader rollout due to lack of mutual agreement on the path forward.
- Snap reported a 5% year-over-year increase in Snapchat’s daily active users to 483 million and monthly active users to 965 million, attributing growth to new app features like Snap Map and Lenses AR filters.
- CEO Evan Spiegel highlighted strong Q1 performance with user growth, revenue acceleration, and free cash flow, while emphasizing ongoing investments in intelligent eyewear and upcoming announcements at the AWE event on June 16th.
