Snap Inc. shares surged more than 25% in extended trading after the company announced a $400 million partnership with Perplexity AI Inc. to incorporate its AI-powered search engine into Snapchat.
The deal gives Snap a new business line and puts the social messaging company more squarely into the mix around AI chatbots and assistants. Perplexity’s answer-engine will be integrated into Snapchat’s Chat interface beginning in 2026, according to Snap Chief Executive Officer Evan Spiegel, though the company’s existing My AI chatbot will also be available to users.
