Snapchat’s stock surges ~16% after beating Q3 earnings and sealing $400 million Perplexity deal
The post Snapchat’s stock surges ~16% after beating Q3 earnings and sealing $400 million Perplexity deal appeared on BitcoinEthereumNews.com.
Snap’s stock jumped about 16% in after-hours trading on Wednesday after the company reported third‑quarter results and revealed a $400 million partnership with Perplexity AI. The deal will allow Perplexity’s AI search engine to be distributed to Snapchat’s global user base. The companies said the integration will begin appearing inside Snapchat in early 2026, where Perplexity’s tool will take default placement in the chat inbox. Snap said its existing My AI chatbot will stay and users can choose between both. The company described this as the start of a wider plan to open Snapchat to more external AI partners. Snap CEO Evan Spiegel said the company sees rising demand for conversational interfaces. He said: “We certainly see a lot of opportunity to open up Snapchat to more AI partners over time. The conversational interface has become a lot more valuable with the advent of conversational AI.” Perplexity will pay Snap through a combination of cash and equity. Snap said revenue from the partnership will begin showing on its books in 2026, once the global rollout is in motion. Snap integrates Perplexity as default search inside chat Snap said Perplexity has over 20 million active users, and the company’s product will appear directly inside Snapchat’s chat inbox. Spiegel said Perplexity will control the responses generated within Snapchat. He said the chatbot will be visible by default, but users can continue using Snap’s own chatbot if they want. Spiegel also said Snap will not sell ads against Perplexity responses. He explained that the integration is expected to help Perplexity gain additional paying subscribers, which is part of Perplexity’s business model. Snap and Perplexity described the deal as “a first step in Snap’s effort to make Snapchat a platform where leading AI companies can connect with its global community in creative and trusted…
Filed under: News - @ November 6, 2025 1:28 am