Snap has entered a significant partnership with Perplexity to integrate its AI search engine into Snapchat. The deal is valued at $400 million, which will be paid in cash and equity by Perplexity. This integration aims to enhance user experience by allowing Snapchat's 940 million users to receive answers from Perplexity's AI when they interact with the My AI chatbot. The new AI feature is expected to be rolled out in early 2026, aligning with Snap's revenue projections. In its recent Q3 2025 earnings report, Snap announced a revenue increase to $1.51 billion, marking a 10% rise compared to the previous year. While the company still reported a loss, it improved from $153 million to $104 million, indicating a narrowing financial gap. The subscription service, Snapchat+, has also seen growth, now boasting over 17 million subscribers.