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Snap has terminated its $400 million agreement with Perplexity, which aimed to integrate the AI search engine directly into Snapchat. The two firms mutually dissolved their partnership earlier this year, as Snap revealed in its most recent financial disclosure.
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Initially, the collaboration was unveiled last November, with intentions to feature Perplexity’s AI search capabilities prominently within Snapchat. At that time, Snap projected that revenue from this venture would commence in “early 2026.” Although the feature underwent testing on Snapchat, it was never fully deployed, according to a support page. The agreement had faced challenges for a while, with the company behind Snapchat noting earlier this year that both parties “had yet to mutually agree on a path to a broader roll out.”
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In a statement, a Perplexity representative clarified that the proposed feature “was not the right fit” for either organization. “After working together, Snap and Perplexity determined that the original implementation was not the right fit for each company’s product goals and have resolved the matter amicably on confidential terms,” the spokesperson said. “Perplexity continues to value Snapchat as a platform for reaching key audiences, remains active on the Snap platform, and expects to continue using Snap’s advertising products.”
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Spiegel also discussed Snap’s upcoming plans to unveil its new AR glasses, which will be the first consumer-ready iteration of Specs. “The way that people are using their computers is changing really dramatically, and I think that that’s going to be evident in the adoption of wearables and the adoption of Specs over time,” he said. “Because people are going to spend less time hunched over their computers or their phones typing away on keyboards, and spend more time supervising agents who are doing that work on their behalf.” The company is anticipated to provide further details about Specs next month at the Augmented World Expo (AWE) event in Long Beach, California.