Snap has ended its planned $400 million partnership with AI search startup Perplexity. The deal, which would have integrated Perplexity's search capabilities into Snapchat, never reached full deployment.
The collaboration aimed to bring AI-powered search functionality to Snapchat users, positioning the platform as a destination for discovery and information retrieval. However, the partnership appears to have stalled before achieving meaningful rollout.
Neither Snap nor Perplexity have publicly detailed reasons for the deal's collapse. The failure marks a setback for Perplexity, which has been aggressively raising capital and pursuing distribution partnerships to compete with established search engines and newer AI assistants.
For Snap, the abandoned deal reflects ongoing challenges in monetizing its user base and differentiating from competitors. The company has pursued various AI features and partnerships as it seeks growth beyond its core advertising business.
The failed partnership underscores the difficulty of executing major tech deals, particularly in the rapidly shifting AI landscape where strategic priorities can shift quickly.
The Trump administration has reached an agreement with Volvo Car AB, allowing the automaker to avoid a proposed US ban on connected vehicles with Chinese ties.
Apple's overhauled Siri AI arrives in iOS 27 public beta with practical improvements but lacks the polish of competing assistants. The update prioritizes task completion over conversational flair.
New Delhi announced a combined $6.5 billion smartphone manufacturing program and $13.3 billion semiconductor initiative to build a competitive electronics supply chain independent of Chinese production.
Short-form video content has fundamentally changed how social media algorithms distribute information. Feed curation is no longer transparent, driven instead by complex algorithmic systems that prioritize engagement over user intent.