Snap shares jumped after the market close as the company unveiled a deal to bring Perplexity’s AI answer engine into Snapchat, with Perplexity paying $400 million over one year in cash and equity. The feature will appear globally in Snapchat’s Chat starting in early 2026, with revenue from the pact expected to begin that year. The stock later settled up about 15% at $8.45. Snap said Snapchat’s nearly 1 billion monthly active users will gain conversational answers from verifiable sources, and it maintained My AI while guiding fourth quarter revenue to between $1.68 billion and $1.71 billion.

Prepared by Christopher Adams and reviewed by editorial team.