Snap’s partnership with Perplexity is officially over. The Snap Perplexity deal, which was announced last year as a major AI integration initiative for Snapchat, has now been terminated, according to the company’s latest quarterly earnings report.
The agreement would have brought Perplexity’s AI-powered search experience directly into Snapchat’s chat interface, allowing users to ask questions and receive conversational answers inside the app. Under the original arrangement, Perplexity was expected to pay Snap $400 million in cash and equity over a one-year period.
Snap Says Partnership Ended Amicably
In its earnings report released Wednesday, Snap confirmed that the companies “amicably ended the relationship in Q1.” The company also noted that its sales guidance now assumes “no contribution from Perplexity.”
The partnership was first announced during Snap’s third-quarter earnings presentation last November. At the time, the company said the collaboration was expected to start contributing to financial results in 2026.
Although the AI integration had reportedly been tested with select users, Snap said back in February that both companies had “yet to mutually agree on a path to a broader rollout.”
Perplexity did not immediately respond to a request for comment from TechCrunch.
What the Snap Perplexity Deal Would Have Added to Snapchat
The now-canceled integration aimed to place Perplexity’s conversational AI search directly into Snapchat’s “Chat” interface.
The feature would have allowed users to ask questions naturally within the app and receive AI-generated responses without leaving Snapchat. At the time of the announcement, Snap CEO Evan Spiegel described the partnership as part of Snap’s broader vision to improve discovery experiences using artificial intelligence.
Spiegel also said the company was looking forward to collaborating with “more innovative partners in the future.”
Snapchat Reports User Growth Despite Deal Ending
Alongside the update on the Snap Perplexity deal, the company also shared fresh user growth numbers for Snapchat.
Snap said Snapchat’s global daily active users increased 5% year-over-year to 483 million. Monthly active users also grew 5%, reaching 965 million.
According to the company, the growth was driven by new features across the platform, including Snap Map and its Lenses augmented reality 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 the company’s press release.
He added that Snap remains focused on investing in Specs and its long-term opportunity in intelligent eyewear. The company also said it plans to share more updates during AWE on June 16.
Snap Continues AI-Focused Restructuring
The end of the Snap Perplexity deal comes shortly after Snap announced workforce reductions earlier this year.
In April, the company said it was laying off roughly 16% of its global workforce, impacting around 1,000 full-time employees. Snap cited advancements in AI as one of the reasons behind the cuts.
Despite the canceled partnership, Snap appears to be continuing its broader AI and augmented reality ambitions as it pushes deeper into wearable technology and platform innovation.
For now, however, Perplexity’s AI search experience will not become part of Snapchat’s wider rollout plans.
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