Snap has ended its partnership with AI startup Perplexity, calling off a deal that would have been valued at $400 million. The company described the termination as amicable, disclosing the development as part of its first-quarter earnings report in May 2026.
The agreement, had it proceeded, would have integrated Perplexity’s conversational AI search technology directly into Snapchat. The cancellation means those plans will not move forward.
Despite the collapsed deal, Snap reported stronger-than-expected financial results for the first quarter. The company posted a 12% increase in revenue and narrowed its net loss compared to the prior period, suggesting the partnership’s cancellation may not have weighed heavily on near-term performance.
The termination of a deal at this scale could signal shifting priorities for either company, though Snap offered no detailed explanation beyond characterizing the split as amicable. The absence of Perplexity’s AI search within Snapchat means users of the app will not receive the conversational search capabilities the partnership had been expected to deliver.
Source: Tech-Economic Times