Snap Shares Jump 16% On $400M AI Deal With Perplexity

Benzinga

Snap shares jumped after the company announced a $400 million deal with Perplexity AI to integrate its AI search engine into Snapchat, expanding Snap’s AI capabilities beyond its My AI chatbot. The partnership includes cash and equity, with revenue contributions expected next year and new opportunities for advertisers to link AI agents to Sponsored Snaps.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Snap shares rose in pre-market trading after it announced a $400 million partnership with

00:06Perplexity AI to integrate its AI search engine into Snapchat, according to Bloomberg.

00:10The deal, which includes cash and equity, gives Snap a new business line

00:13and expands its AI presence beyond its existing MyAI chatbot.

00:17Shares rose more than 16% in pre-market trading on Thursday

00:20after falling to about 32% year-to-date through Wednesday's close.

00:24Perplexity will compensate Snap with a mix of cash and equity,

00:27with revenue from the partnership expected to begin contributing next year.

00:30Snap CEO Evan Spiegel said Snap sees potential for advertisers to use chatbots

00:35and AI assistants in the app, including link-sponsored snaps to those AI agents.

00:40For all things money, visit Benzinga.com.

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