Snap terminates $400M Perplexity AI search deal
snap ended its $400 million partnership with perplexity in q1, canceling the ai search integration into snapchat. the deal, originally announced in november, included cash and equity payments expected to contribute revenue in 2026. snap’s sales guidance now assumes zero contribution from perplexity.
Snap terminated its $400 million partnership with Perplexity in Q1, canceling the planned integration of Perplexity's AI search engine into Snapchat’s Chat interface. Announced last November, the deal included cash and equity payments and was expected to drive revenue starting in 2026, but Snap’s updated sales guidance assumes no contribution from the agreement. The termination follows a restructuring period where Snap laid off 16% of its global workforce, citing AI advancements as a factor.