"Snapchat, with its nearly 1 billion users, will embed Perplexity within its app and allow people to ask questions and converse with the artificial intelligence (AI). The integration is expected to launch in early 2026. The hope is that this feature will keep users engaged in the app for longer, enabling increased user retention, profitability, and perhaps even diversifying revenue streams."
"Snap is still trading near all-time lows, so if the Perplexity integration happens smoothly, the ad revenue driven by an increase in time spent per user could be substantial. In addition to ad revenue, there's potential for brands to sponsor AI answers, offer AI-driven shopping suggestions, and cross-sell or upsell opportunities. Snap could also charge a premium subscription to use the Perplexity feature."
Snap will embed Perplexity AI into Snapchat in early 2026, enabling users to ask questions and converse with an AI inside the app. The integration aims to increase time spent per user, improve retention, and diversify revenue through higher ad engagement, sponsored AI answers, AI-driven shopping suggestions, and premium subscriptions. Snap currently trades near all-time lows, presenting an investment opportunity if the rollout succeeds and AI costs remain controlled. Rapid monetization and cost management will be critical because Snap has often launched innovations without translating them into significant earnings.
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