Snap has quietly terminated its $400 million partnership with AI search startup Perplexity, revealing the split as part of its first-quarter earnings report. The deal, announced last November, would have embedded Perplexity’s conversational AI search engine directly into Snapchat’s Chat interface. Despite limited testing with select users, the companies failed to agree on a path to broader rollout and parted ways amicably in Q1, with Snap confirming its sales guidance assumes no contribution from Perplexity.
CEO Evan Spiegel said the company remains focused on AI-powered intelligent eyewear, with more details expected at AWE on June 16. Snap reported daily active users growing 5% year-over-year to 483 million. The results follow Snap’s April announcement of roughly 1,000 job cuts — around 16% of its workforce — which the company attributed partly to AI-driven efficiency gains.