Everything you need to know about snap says its 400m deal.
[ad_1]Snap no longer has a deal with Perplexity, the company revealed on Wednesday as part of its quarterly earnings report. The deal, announced last November, would have seen Perplexity’s AI search engine integrated directly into Snapchat. Perplexity was set to pay Snap $400 million in cash and equity over one year as part of the deal.
Snap said that the companies “amicably ended the relationship in Q1″ and that its sales guidance “assumes no contribution from Perplexity.” When Snap announced the deal as part of its third-quarter earnings last year, it said it expected revenue from the partnership to begin contributing to its financials in 2026.
The deal would have seen Perplexity integrated into Snapchat’s “Chat” interface, allowing users to ask questions and receive conversational answers directly within the app. Although the integration was being tested with select users, Snap said in February that the companies had “yet to mutually agree on a path to a broader roll out.”
Snap CEO Evan Spiegel said at the time of the initial announcement that the deal reflected the company’s vision to use AI to enhance discovery on Snapchat, and that Snap was looking forward to “collaborating with more innovative partners in the future.”
Perplexity did not immediately respond to TechCrunch’s request for comment.
Snap revealed on Wednesday that Snapchat’s global daily active users (DAU) rose 5% year-over-year to 483 million, while monthly active users (MAU) also grew 5% to reach 965 million. The company attributed the growth to new features across the app, including Snap Map and its Lenses AR filters.
“In Q1, we returned to growth in daily active users, accelerated revenue growth, expanded margins, and generated strong free cash flow,” Spiegel said in a press release. “We remain focused on disciplined execution as we invest in Specs and our long-term opportunity in intelligent eyewear and look forward to sharing more at AWE on June 16th.”
Techcrunch event
San Francisco, CA | October 13-15, 2026
Snap said in April that it was laying off roughly 16% of its global workforce, impacting around 1,000 full-time employees, citing advancements in AI for the cuts.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
[ad_2]
Source link
More on snap says its 400m deal
Stay tuned for updates on snap says its 400m deal as the story develops. Related: MediaTek unveils Dimensity 7500 with Arm C1 CPU, faster NPU.
Snap says its 400m deal: Key Details Explained
Snap says its $400M deal with Perplexity 'amicably ended' — let’s break down what actually matters here. This one stands out because it touches the things buyers care about most: performance, features, and value for money. If you’re comparing options right now, it’s worth keeping on your shortlist.
Looking at the bigger picture, this fits into a wider trend where brands compete harder with every release cycle. Expect more details to surface as things develop, including confirmed specifications and pricing from official sources.
Should You Keep Following This?
If you follow mobile tech closely, the answer is yes. Developments like this could influence your next purchase decision, so it’s worth tracking. Bookmark this page — we’ll keep the coverage fresh as the story evolves.
Frequently Asked Questions
Snap revealed in its quarterly earnings report that the companies amicably ended the relationship in Q1. The deal, announced last November, would have seen Perplexity pay Snap $400 million in cash and equity over one year and integrate its AI search engine into Snapchat's Chat interface.
No, Snap said its sales guidance assumes no contribution from Perplexity. Although tested with select users, the companies had yet to agree on a path to a broader rollout.
Global daily active users rose 5% year over year to 483 million, and monthly active users also grew 5% to 965 million, driven by features like Snap Map and Lenses AR filters.
CEO Evan Spiegel said the company returned to DAU growth, expanded margins, and generated strong free cash flow. Snap previously laid off about 16% of its workforce (around 1,000 employees) citing AI advancements, and will share more about its Specs intelligent eyewear at AWE on June 16.
