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

Snap no longer has a relationship with Perplexity, the company disclosed Wednesday as part of its filing quarterly earnings report. agreement, he announced Last November, they would have seen Perplexity’s AI search engine integrated directly into Snapchat. Disruption was supposed to pay Snap $400 million in cash over one year as part of the deal.

Snap said the companies “amicably ended the relationship in Q1” and that its sales guidance “takes no action from Perplexity.” When Snap announced the deal as part of its third-quarter earnings last year, it said it expected revenue from the deal to begin paying its dividends in 2026.

The deal would have seen Perplexity integrated into Snapchat’s “Chat” feature, allowing users to ask questions and receive interactive responses within the app. Even the mix was being tested and users, Snap he said in February that companies “still had to agree on a way forward.”

Snap CEO Evan Spiegel he said at the time In the original announcement that the partnership reflects the company’s vision to use AI to improve the discovery of Snapchat, and that Snap is looking forward to “collaborating with intelligent partners in the future.”

Frustration did not immediately respond to TechCrunch’s request for comment.

Snap revealed on Wednesday that Snapchat’s global active users (DAU) rose 5% year over year to 483 million, while monthly active users (MAU) also grew 5% to 965 million. The company attributed the growth to new features in the app, including Snap Maps and its Lenses AR filters.

“In Q1, we returned to daily user growth, increased revenue, expanded margins, and generated free cash flow,” Spiegel said in a press release. “We’re focused on smart killing as we invest in Specs and our long-term opportunities in smart eyewear and look forward to sharing more at AWE on June 16.”

Snap said in April that it had stopped about 16% of its global workforce, involving nearly 1,000 full-time employees, citing AI advancements in downsizing.