Snap has announced the amicable end of its $400 million partnership with Perplexity. The deal aimed to integrate Perplexity’s AI search engine into Snapchat but stalled after selective testing.

The move comes as Snap revealed a 5% year-over-year growth in daily active users, now at 483 million. CEO Evan Spiegel highlighted the company's focus on Specs and AR technology for its long-term vision.

Despite the setback, Spiegel remains optimistic about future collaborations with innovative partners. The unexpected termination of this deal could signal shifts in how tech giants approach AI integrations.

The partnership was set to contribute to Snap’s financials in 2026 through Perplexity's integration into Snapchat’s Chat interface but failed to materialize beyond initial tests, likely due to ongoing disagreements on implementation details.