Snap and Perplexity Terminate $400 Million Partnership Agreement
Snap and AI search company Perplexity have mutually terminated their $400 million agreement, Snap announced. The partnership, intended to integrate Perplexity's AI search engine into Snapchat, was announced last November.
What happened?
Snap has confirmed it has terminated its collaboration agreement with AI search company Perplexity. The deal, which had a reported value of $400 million, was announced last November. According to Snap, the dissolution of the partnership was mutual. Details regarding the reasons for the termination have not been made public.
Key facts
| Avtalets värde | 400 miljoner dollar |
|---|---|
| Tillkännagivet | November 2025 |
| Avslutat | Maj 2026 |
”The deal, announced last November, would have seen Perplexity's AI search engine integrated directly into Snapchat.”
Why it matters
The agreement aimed to integrate Perplexity's AI-powered search engine directly into the Snapchat platform. This would have offered Snapchat users new search capabilities based on advanced AI. The termination means Snap can now pursue other solutions for AI integration, while Perplexity can focus on alternative distribution and partnership strategies.
Who is affected?
This primarily affects Snap and Perplexity, who must now adjust their strategies for AI development and market expansion. For Snapchat users, it means the planned AI search functionality from Perplexity will not be implemented. The industry at large views this as an example of the shifting dynamics in AI partnerships.
Impact on the EU
Not relevant for EU status. The news concerns a terminated partnership between two American technology companies and has no direct link to EU regulations or specific market conditions at this time.
What else you should know
The agreement was one of the larger known partnerships between a social media platform and an AI search company in the past year, making its termination particularly notable. No further comments on the specific reasons for the break-up were provided, but it is not uncommon for such business deals to be reassessed or terminated in a rapidly evolving technology industry.
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