Snap-Perplexity $400M AI Search Deal Collapses After 6 Months — 'Not the Right Fit'

TechCrunch·high signal

Snap disclosed in its Q1 earnings that its $400M deal with Perplexity to integrate AI search into Snapchat has 'amicably ended.' The partnership, announced November 2025, was never fully rolled out after the companies couldn't agree on a broader path. Perplexity called it 'not the right fit.' The collapse coincides with Snap cutting 16% of its workforce in April and issuing cautious guidance citing the Iran conflict's $20-25M monthly ad revenue impact.