From Snaps to Smart Chats: Snapchat X Perplexity AI $400 Million Collaboration

Snapchat is on a major upgrade. It's in a deal with Perplexity AI, with both teams partnering on a $400 million contract. This deal is said to make your favourite Snapchat a mix of chat, fun and intelligence. Snap Inc. (the company behind Snapchat) announced the partnership on November 5, 2025. And many wonder if this deal will change Snapchat so much that all the real snap fun is gone? What does it mean to the Snapchat users? How will it benefit Snapchat and Perplexity AI? For all that, learn more. 

What This Means for Snapchat Users

This upgrade will let the Snapchat users access (chat) with Perplexity AI directly inside the app. So, less switching between the apps. Plus, the AI will respond to you like a smart friend (meaning fun + interactive).

For instance, ask it anything, like "What’s the capital of Iceland?” or “Give me date ideas for winter.”

The Business Side of the Deal - Snapchat + Perplexity AI

• This deal is worth $400 million. It's a mix of cash and company shares (equity).
• Snapchat expects to generate revenue from this deal starting in 2026.
• The investors liked the idea. It's evident when Snapchat’s stock jumped by almost 16% after the announcement.
• Several industry experts believe that this idea is unique and will help the app stand out from TikTok, Instagram, and Facebook.

Why Both Companies Benefit - Snapchat + Perplexity AI

Snapchat’s Gain

According to Snapchat, there are 943 million monthly active users on the platform (spread across 25 countries). And about 75% of them are between 13 and 34 years old. Therefore, Snapchat can now utilise Perplexity’s technology to create an image as a fun yet privacy-safe AI platform for its young audiences.

Perplexity’s Gain

On the other hand, Perplexity can now tap into Snapchat’s massive audience outside the tech space. It's a great opportunity to widen its AI scope.

A tech analyst, Max Willens, said, “Perplexity needs a way to build its profile among young consumers, and Snap needs an AI chat partner that will allow its users to stay engaged without leaving its app.”

How Will Snapchat + Perplexity AI Work?

• Perplexity itself will now control AI responses inside Snapchat. Perplexity will now decide how the AI will reply to you.
• There will be no ads run on the AI responses. The CEO Evan Spiegel clarified that the company's goal is to make the feature about discovery and fun.

"We won’t be selling advertising against the Perplexity responses. More personal, social, and fun — woven into the fabric of your friendships, Snaps, and conversations,” he said.

But There Are Still Challenges...

In terms of revenue, Snapchat's growth went up 10% to $1.51 billion in the last quarter. However, even with this growth, Snapchat is concerned that its user base might decline in late 2025.

New social media regulations have been implemented. Australia’s Minimum Age Bill will come into effect from December 2025. There have been changes in how companies are spending on ads in 2025.

Therefore, this deal could be crucial for Snapchat's future success. 

Evan Spiegel Biography: The Emergence Of Snap Inc.

Snap Inc. took the social media industry by a storm at a time when Facebook and Twitter ruled the roost. Read about Evan Spiegel net worth, education and journey of Snap.inc.

StartupTalky- Business News, Insights and StoriesRishabh Rathi