Prime Highlight
- Snap Inc. announced a $400 million partnership with Perplexity AIto integrate advanced AI features into the Snapchat app.
- The collaboration aims to enhance user engagement and discoveryby allowing users to ask questions and explore topics directly within Snapchat.
Key Facts
- Snap’s share price rose 19%in pre-market trading to $8.69 from $7.30 following the announcement.
- Perplexity AI will pay $400 millionto Snap over one year through a mix of cash and equity, with revenue generation expected to begin in 2026.
Background
Snap Inc. shares jumped more than 19% in pre-market trading on the New York Stock Exchange (NYSE) on Thursday, November 6, 2025, after the company announced a $400 million partnership with Perplexity AI. The deal is a major move for Snapchat as it adds artificial intelligence to its app to make it easier for users to engage and discover.
According to the agreement, Perplexity AI will pay $400 million to Snap over one year through a mix of cash and equity. The AI company expects to start generating revenue from the collaboration in 2026.
The partnership will allow Snapchat’s 1 billion monthly active users to access AI-powered tools that enable them to ask questions, explore topics, and discover new information directly within the app.
“With millions using Snapchat to connect and explore the world every day, integrating Perplexity enables us to satisfy users’ curiosity the instant it appears,” said Aravind Srinivas, CEO of Perplexity AI. Evan Spiegel, CEO of Snap Inc., added that the collaboration reflects a shared vision to enhance discovery and connection through AI.
Following the announcement, Snap’s share price rose to $8.69 from $7.30, after closing 2.28% lower in the previous session. Despite the spike, Snap’s stock has fallen 83% over the past five years, 38% in one year, and 35% year-to-date. The company’s market capitalization stood at $12.62 billion before markets opened on Thursday.
