Snapchat Partners with Perplexity to Integrate Conversational AI
Snap Inc., the company behind Snapchat, reported strong user growth and revenue in its latest quarterly results. The company announced a major partnership with AI answering engine Perplexity, valued at $400 million, which contributed to a 12% surge in Snap's shares.
Details of the Partnership
Snap will integrate Perplexity’s conversational AI into Snapchat starting early next year, offering users a new way to ask questions, explore topics of interest, and gain insights.
“A new way to ask questions, explore topics they care about, and learn about the world.”
This integration represents the first step in Snap’s broader strategy to make Snapchat a platform where leading AI companies can engage creatively and reliably with its global user base.
Financial and Strategic Impact
- Perplexity will pay $400 million in cash and equity over one year.
- Snap authorized a stock buyback program alongside the AI partnership announcement.
- Investor enthusiasm reflects appreciation for Snap’s push to incorporate AI-driven features from startups.
Summary
Snap's strategic AI partnership and strong financial results signal the company’s commitment to innovation and enhancing Snapchat’s capabilities, fueling investor confidence.