Snap shares rose after the company announced a $400 million partnership with AI start-up Perplexity to integrate its conversational search technology into Snapchat beginning in 2026. The deal, funded through a mix of cash and equity, was unveiled alongside stronger-than-expected third-quarter earnings that lifted investor sentiment.
Snap also said it will spin off development of its augmented reality Spectacles into a dedicated subsidiary called “Specs,” mirroring Alphabet’s Waymo model. The company confirmed it has explored additional funding for the new unit but emphasised it does not require outside capital to bring Specs to market in 2026.
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The Perplexity partnership signals Snap’s deeper push into AI-driven search and engagement features, while the Specs spin-off highlights its ambition to commercialise AR hardware more independently.
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... I meant to post on this earlier in the session (late US time). My bad.
