Snapchat just dropped a bombshell in the AI world, teaming up with Perplexity AI in chats to supercharge everyday conversations. This $400 million partnership—split between cash and equity—brings Perplexity's smart search engine straight into Snapchat chats starting early 2026. Users will fire off questions and snag instant, chatty answers without ever ditching the app. It's a game-changer for the 477 million daily active users who crave quick, fun info amid Snaps and stories. Shares in Snap Inc. skyrocketed 16% after hours, signalling investor love for this bold move against TikTok and Instagram giants.

Perplexity AI in Chats: Smarter Chats, Bigger Wins for Both

Perplexity AI in Chats

Snapchat CEO Evan Spiegel calls this the dawn of “personal, social, and fun” AI, woven right into friendships and convos. Perplexity CEO Aravind Srinivas adds that it fuels global curiosity, where it sparks—in chats. No ads clutter the responses; Perplexity owns the AI magic, keeping things pure and engaging.

Here's what stands out in this Perplexity AI in chats rollout:

  • Seamless Integration: Ask anything from trivia to tips; get friend-like, fact-packed replies in the chat window.
  • User Reach: Targets Snapchat's 75% share of 13-34-year-olds across 25+ countries, perfect for mobile-first millennials and Gen Z.
  • Privacy Focus: Builds on Snapchat's creative, secure vibe—no data grabs for ads here.
  • Revenue Kickoff: Cash flows from 2026, boosting Snap's ad-free discovery play.

This deal cements Snapchat's recovery glow. Third-quarter revenue jumped 10% to $1.51 billion, beating forecasts, while net losses shrank to $104 million. Daily users grew 8% year-over-year, with direct-response ads up 8% thanks to fresh tools like Pixel Purchase.

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Yet, hurdles loom. Snap warns of a slight Q4 user dip from regs like Australia's youth social media ban in December. Still, Q4 revenue eyes $1.68-1.71 billion, matching analyst bets. The Perplexity AI in chats era could redefine social scrolling—turning passive scrolls into curious quests. Snapchat fights back smartly; will rivals scramble? Stay tuned as 2026 unfolds this AI adventure.

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