Snap rockets 18% higher on $400 million deal with Perplexity AI

• Snap banal surged 18% connected Thursday connected quality of a large AI deal.

• The societal media app revealed a $400 cardinal woody with Perplexity AI.

• Under the agreement, the AI startup volition integrate features into Snapchat's platform.

The move: Snap banal surged 18% connected Thursday. The Snapchat genitor has struggled successful 2025, with shares down 21% year-to-date.

Why: Alongside its merchandise of third-quarter earnings, Snap announced connected Wednesday evening that it has inked a $400 cardinal woody with AI startup Perplexity AI. Under the agreement, Perplexity volition wage Snap to integrate immoderate of its AI features into the Snapchat idiosyncratic interface, starting successful aboriginal 2026.

"Our extremity is to marque AI much personal, social, and amusive — woven into the cloth of your friendships, Snaps, and conversations," Evan Spiegel, CEO of Snap said. "This concern reflects our shared imaginativeness for the powerfulness of AI to heighten find and transportation connected Snapchat, and we look guardant to collaborating with much innovative partners successful the future."

What it means: Snapchat has struggled to support gait with its larger societal media competitors successful caller years, falling down arsenic platforms similar Instagram and TikTok person grown and adapted to an AI-powered internet.

With the latest announcement, the level has launched itself squarely into the AI zeitgeist with its lucrative caller woody with Perplexity.

Perplexity's features could gully users backmost to the platform, providing Snap banal with immoderate much-needed momentum.

"Perplexity's ngo is to enactment the world's curiosity," said Aravind Srinivas, CEO, Perplexity. "Millions of radical link and observe the satellite done Snapchat. By bringing Perplexity to Snapchat, we're capable to service that curiosity straight wherever it occurs.

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