On November 5th, 2025, Snap announced a one-year partnership with Perplexity AI that will integrate Perplexity's conversational "answer engine" directly into Snapchat's Chat tab starting in early 2026. Perplexity will pay Snap $400 million in cash and equity for the placement—a high-margin, non-advertising revenue stream signaling Snap's push to diversify beyond ads.

Dario Betti, CEO of the Mobile Ecosystem Forum, unpacks the deal: Perplexity will sit alongside Snap's existing "My AI" assistant, which runs on OpenAI's GPT and Google's Gemini. Users will have two AI chatbots side by side—Perplexity for research-style responses with citations, My AI for general assistance. The UX trade-off is real: with Sponsored Snaps already appearing in DMs, the chat experience risks feeling crowded.The announcement landed alongside a better-than-expected quarter: monthly active users climbed 7% year-over-year to 943 million, revenue rose 10% to $1.5 billion, and net losses narrowed. But North American ads grew just 1% as large brands pulled back. Snap is also carving out its AR glasses business into a subsidiary called "Specs," targeting a 2026 launch.

Let us know and share your opinions at +44 7770 1962 27 send us SMS, RCS, Viber or WhatsApp and stay ON MESSAGE.Key watch items: how the dual-bot UX lands with users, whether Perplexity drives engagement, and if North American ad spend stabilizes.

Key topics: Snapchat, Perplexity AI, My AI, conversational AI, answer engine, Snap earnings, Gen Z social media, ad revenue diversification, AR glasses, Specs, platform partnerships, chatbot UX