Snap (SNAP) is ripping higher in premarket trading after the company struck a large AI partnership in a move that positions the platform squarely inside the next wave of mobile discovery.
In a new press release, Snap says it has agreed to integrate Perplexity’s AI answer engine directly into Snapchat’s chat interface starting in early 2026, offering conversational search to its global base.
“Through this integration, Perplexity’s AI-powered answer engine will let Snapchatters ask questions and get clear, conversational answers drawn from verifiable sources, all within Snapchat.
The partnership underscores Snap’s growing role as a trusted platform for AI partners to reach a large, engaged, mobile-native audience. With over 943 million monthly active users and more than 75% of 13–34-year-olds in over 25 countries using Snapchat, Snap offers AI partners a privacy-safe way to reach hundreds of millions of people who already communicate through chat every day.”
Premarket, SNAP surged more than 20% as investors reacted to the scale and economics of the deal, currently trading at $8.77.
Under the agreement, Perplexity will pay Snap $400 million over one year, a mix of cash and equity tied to global rollout. Snap says revenue contribution from the deal is expected to begin next year.
Snap says the partnership is a major expansion of its AI footprint, giving users a way to ask questions and receive sourced answers without leaving the app — while offering AI partners access to a massive mobile-native audience.
Says Snap CEO Evan Spiegel,
“Our goal is to make AI more personal, social, and fun – woven into the fabric of your friendships, Snaps, and conversations. This partnership reflects our shared vision for the power of AI to enhance discovery and connection on Snapchat, and we look forward to collaborating with more innovative partners in the future.”
The agreement marks the first major external AI system embedded inside Snapchat at scale, signaling a shift toward becoming a broader AI platform while maintaining privacy-safe controls. Snap says messages sent to Perplexity will be used to enhance personalization within Snapchat.
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