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Snap's $400 Million Perplexity AI Integration

Kavout

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This episode provides a comprehensive overview of a significant $400 million partnership between Snap Inc., the company behind Snapchat, and Perplexity AI, an AI-powered answer engine. This deal involves Perplexity paying Snap a mix of cash and equity to embed its conversational AI search technology directly into the Snapchat app's My AI feature, with the integration expected to roll out in early 2026 and revenue recognition for Snap beginning the same year. The strategic goal for Snap is to enhance user engagement and provide a more powerful in-app search experience to its nearly one billion monthly active users, while Perplexity gains a massive distribution channel for its technology, positioning it in the competitive AI search landscape. This move, which was met with a 25% surge in Snap's stock price, is considered a major industry development that could redefine how social media platforms utilize artificial intelligence for discovery and user interaction.

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