The deal means that Perplexity's AI-powered search engine will be integrated with Snapchat starting next year, according to Snap CEO Evan Spiegel. Snapchat's existing chatbot will continue to exist in parallel.
According to Spiegel, the company also sees "great opportunities" to open up Snapchat to more AI collaborations in the future.
The news came as Snap presented its quarterly report.
The company beat analysts' expectations with revenue of $1.5 billion. The number of daily users also increased more than expected, up 8 percent to 477 million per day, compared to a year ago.
Snap's stock took a leap of joy and surged up 25 percent in after-hours trading on Wall Street.
