Snap ends $400M AI search deal with Perplexity, no revenue expected from partnership.

Snap announced it has amicably ended its partnership with AI search engine Perplexity, which was set to integrate into Snapchat and pay Snap $400 million over a year. The deal, revealed last November, aimed to enhance Snapchat's chat interface with AI-driven answers but failed to reach a broader rollout agreement. Snap's Q1 report confirmed no revenue contribution from Perplexity and highlighted user growth driven by other app features. The company is focusing on AI and intelligent eyewear investments despite recent layoffs linked to AI advancements.