Snap Shares Surge on $400 Million Perplexity AI Deal (3)

Snap Inc. shares surged 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.

“We certainly see a lot of opportunity to open up Snapchat to more AI partners over time,” Spiegel ...