Snap tops revenue estimate and unveils $400 million deal with Perplexity AI, shares jump


FILE PHOTO: Snapchat logo is seen in this illustration taken July 28, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -Snap beat third-quarter revenue estimate on Wednesday and said it has partnered with Perplexity AI to integrate its artificial intelligence-powered search engine into Snapchat, sending the social media firm's shares up 16% after the bell.

AI startup Perplexity will pay Snap $400 million over one year in cash and equity, with revenue contributions expected from 2026. The integration will offer verifiable answers to users' questions within the Snapchat app.

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