Topline<\/p>\n
Snap shares rose sharply in premarket trading early on Thursday after the company announced a $400 million deal with AI firm Perplexity and a $500 million stock buyback program, after releasing its third-quarter earnings report, which beat analyst expectations.<\/p>\n
Snapchat’s parent Snap announced a $400 million deal with AI startup Perplexity on Wednesday.<\/p>\n
Copyright 2023 The Associated Press. All rights reservedKey Facts<\/p>\n
Snap\u2019s share price climbed to $8.49 in early trading on Thursday, up more than 16.4% from Wednesday\u2019s close.<\/p>\n
Alongside its earnings report, the social media company announced<\/a> that artificial intelligence startup Perplexity will integrate its AI-powered search engine directly into the Snapchat app. <\/p>\n Starting early next year, the AI search tool will appear in Snapchat\u2019s chat interface and it will let the social media app\u2019s users \u201cask questions and get\u2026conversational answers\u2026from verifiable sources,\u201d the company said.<\/p>\n As part of the deal, Perplexity will pay Snap $400 million over the next year through a \u201ccombination of cash and equity.\u201d<\/p>\n During the company\u2019s earnings call, Snap CEO Evan Spiegel said Perplexity will \u201ccontrol the responses from their chatbot inside of Snapchat,\u201d and the social media company will not be selling \u201cadvertising against the Perplexity responses.\u201d<\/p>\n What Do We Know About Snapchat\u2019s Existing Ai Integration?<\/p>\n The integration of Perplexity\u2019s search tool into Snapchat comes nearly two years after the platform integrated its \u201cMy AI\u201d chatbot into the social media app. At launch<\/a>, My AI was powered by OpenAI\u2019s GPT models but last year, the chatbot also integrated<\/a> Google\u2019s Gemini AI models. In Wednesday\u2019s announcement, Snap said My AI will continue to be offered alongside Perplexity\u2019s AI search tool. In the earnings call, Spiegel said Perplexity will receive \u201cdefault placement in our chat inbox,\u201d and he expects the deal will help the AI startup gain additional subscribers.<\/p>\n What Do We Know About Snap\u2019s Earnings?<\/p>\n In its earnings report on Wednesday, the company announced Q3 2025 revenue of nearly $1.51 billion, up 10% from last year\u2014beating analyst estimates of around $1.49 billion. The company reported its daily active user base had risen to 477 million, up 8% year-over-year, while monthly users had grown 7% to 943 million. The company also said it’s the time users\u2019 \u201ctime spent watching content\u201d and \u201cnumber of content viewers\u201d also increased year-over-year, without providing specific numbers. As a result of strong earnings, Snapchat announced that its board had approved a plan to repurchase $500 million of its stock.<\/p>\n","protected":false},"excerpt":{"rendered":"Topline Snap shares rose sharply in premarket trading early on Thursday after the company announced a $400 million…\n","protected":false},"author":2,"featured_media":165953,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[291,289,290,18,19,17,7623,27840,13446,95583,34020,82],"class_list":{"0":"post-165952","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-eire","12":"tag-ie","13":"tag-ireland","14":"tag-perplexity","15":"tag-perplexity-ai","16":"tag-snap","17":"tag-snap-ai","18":"tag-snapchat","19":"tag-technology"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115502560203875091","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/165952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=165952"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/165952\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/165953"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=165952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=165952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=165952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}