Archive · 6 Nov 2025
Snap Stock Surges on $400 Million Perplexity AI Partnership
Imagine your favorite app for sending fun pictures and videos, Snapchat, is making a new friend!
This friend is a super-smart computer program called Perplexity that can find answers to questions really fast.
Snapchat is getting a big amount of money, $400 million, from Perplexity to let it be the main helper for finding information inside Snapchat, starting in a couple of years.
Because of this exciting news, the company that makes Snapchat saw its stock price jump up a lot!
This deal helps Snapchat stay interesting and compete with other apps, while Perplexity gets to show its smarts to millions of people.
Snap Inc.'s stock price surged over 19% in pre-market trading.
The jump is attributed to a $400 million deal with AI search startup Perplexity.
Perplexity will invest $400 million in cash and equity into the partnership.
Perplexity's AI is set to become the default AI within Snapchat's chat interface starting January 2026.
This partnership aims to enhance user engagement for Snapchat and broaden Perplexity's user access.
- Who
- Snap Inc. and Perplexity AI
- What
- Snap's stock price surged over 19% in pre-market trading following the announcement of a $400 million deal with AI search startup Perplexity.
- When
- Pre-market trading, following the deal announcement.
- Where
- Wall Street, specifically affecting Snap Inc. (NYSE: SNAP) stock.
- Why
- The significant financial deal and strategic partnership are expected to enhance user engagement for Snapchat and expand Perplexity's reach.
Snap's Perspective
Perplexity's Perspective
Strategic Goals
Snap's Perspective
To boost user engagement and its competitive standing in the social media landscape by integrating advanced AI search capabilities.
Perplexity's Perspective
To expand its reach and user base globally through integration with Snapchat's popular platform.
Financial Aspect
Snap's Perspective
Secures a significant $400 million cash and equity deal, contributing substantially to its revenue.
Perplexity's Perspective
Invests $400 million over a year for access to Snapchat's user base, aiming for widespread adoption of its AI search engine.
- Company Stock
- Snap Inc. (NYSE: SNAP)
- Partnership Value
- $400 million (cash and equity)
- Perplexity AI Investment
- $400 million over one year
- Stock Movement
- Over 19% jump in pre-market trading
- Integration Target
- Default AI in Snapchat's chat interface from January 2026
Sources
Snap and Perplexity sign deal to put AI search directly in Snapchat
Snapchat Bets Big on AI: $400 Million Deal with Perplexity to Redefine Chat Experience by 2026
Snapchat to bring Perplexity AI search in the app: Here is everything you need to know
