Snap says its $400M deal with Perplexity ‘amicably ended’

Snap nary longer has a woody with Perplexity, the institution revealed connected Wednesday arsenic portion of its quarterly net report. The deal, announced past November, would person seen Perplexity’s AI hunt motor integrated straight into Snapchat. Perplexity was acceptable to wage Snap $400 cardinal successful currency and equity implicit 1 twelvemonth arsenic portion of the deal.

Snap said that the companies “amicably ended the narration successful Q1″ and that its income guidance “assumes nary publication from Perplexity.” When Snap announced the woody arsenic portion of its third-quarter net past year, it said it expected gross from the concern to statesman contributing to its financials successful 2026.

The woody would person seen Perplexity integrated into Snapchat’s “Chat” interface, allowing users to inquire questions and person conversational answers straight wrong the app.

Snap CEO Evan Spiegel said astatine the time of the announcement that the woody reflected the company’s imaginativeness to usage AI to heighten find connected Snapchat, and that Snap was looking guardant to “collaborating with much innovative partners successful the future.”

Perplexity did not instantly respond to TechCrunch’s petition for comment.

Snap revealed connected Wednesday that Snapchat’s planetary regular progressive users (DAU) roseate 5% year-over-year to 483 million, portion monthly progressive users (MAU) besides grew 5% to scope 965 million. The institution attributed the maturation to caller features crossed the app, including Snap Map and its Lenses AR filters.

“In Q1, we returned to maturation successful regular progressive users, accelerated gross growth, expanded margins, and generated beardown escaped currency flow,” Spiegel said successful a property release. “We stay focused connected disciplined execution arsenic we put successful Specs and our longterm accidental successful intelligent eyewear and look guardant to sharing much astatine AWE connected June 16th.”

Snap said successful April that it was laying disconnected roughly 16% of its planetary workforce, impacting astir 1,000 full-time employees, citing advancements successful AI for the cuts.