Snap disclosed in its Q1 2026 investor letter that it and Perplexity AI have mutually terminated a $400 million cash‑and‑equity partnership announced last November. The deal, which would have embedded Perplexity’s answering engine into Snapchat’s Chat, will no longer contribute to Snap’s 2026 revenue outlook. While the move pauses the planned AI chatbot rollout, Snap continues to push other AI‑driven features and reports a 5 % rise in daily active users. Read more →