Snapchat to Integrate Conversational AI
Snap Inc. reported strong financial results and user growth, boosting its stock by about 12% on Thursday. The company announced a significant partnership with AI-powered answering engine Perplexity, valued at $400 million in cash and equity over one year.
Key Partnership Details
Snap will integrate Perplexity's conversational AI into Snapchat starting early next year. This feature will offer users a novel way to ask questions, explore interests, and learn more about the world through AI-enhanced search.
"A new way to ask questions, explore topics they care about, and learn about the world."
Snap described this collaboration as a foundational step toward transforming Snapchat into a platform where top AI companies engage with its global audience creatively and reliably.
Financial and Strategic Highlights
- Snap's strong quarterly results showed growth in both user base and revenue.
- The company approved a stock buyback program alongside the Perplexity partnership.
- The investment in AI technology signals Snap's commitment to enhancing its service offerings.
Investor Response
The market responded positively, reflecting confidence in Snap’s strategic moves to integrate AI-driven tools from startups into its ecosystem.
Summary
Snap’s integration of Perplexity’s AI marks a strategic push to enhance user engagement and innovate its platform with cutting-edge conversational search technology.
Author's summary: Snap's innovative partnership with Perplexity introduces AI-powered search to Snapchat, driving growth and investor confidence in the evolving social media landscape.