Perplexity AI

Snap Inc. (SNAP) shares rose 9% after announcing a $400M Perplexity AI collaboration and Q3 results exceeding expectations. The deal integrates Perplexity’s search engine into Snapchat, enhancing information discovery. Snap expects revenue generation from 2026. Q3 revenue reached $1.51B with increased daily active users. However, Snap anticipates lower Q4 DAUs due to age verification implementations and regulatory compliance. Snap is also advancing its hardware ambitions with the projected 2026 launch of its sixth-generation augmented reality glasses, Specs.

Snap shares jumped 15% after Q3 earnings beat revenue expectations with $1.51 billion and the announcement of a $500M stock repurchase program. A key driver is a partnership with Perplexity AI, integrating its search into Snapchat in 2026 for $400M, enhancing user experience and AI platform capabilities. While Q4 sales are projected at $1.68-1.71B, the company acknowledged potential user engagement declines due to regulations and platform changes. Snap is also creating a subsidiary for Specs AR glasses.

Perplexity AI accuses Amazon of “bullying” following a cease-and-desist letter demanding the startup prevent Comet users from making Amazon purchases. Amazon alleges computer fraud, claiming Perplexity lacks authorization and compromises user data. Perplexity argues Comet enhances shopping, while Amazon contends its agents degrade the experience. The dispute highlights tensions between tech giants and AI startups regarding platform integration, data security, and potential business model disruption, with Amazon developing its own AI shopping tools. The outcome could set precedents for AI integration in e-commerce.

Getty Images (GETY) shares fell over 6% after announcing a multi-year licensing agreement with AI search engine Perplexity AI. Perplexity will integrate Getty’s images into search results with attribution, enhancing result quality and user trust. Getty’s VP Nick Unsworth touted the partnership’s benefits for AI platforms. While the deal monetizes Getty’s content and gives Perplexity a vast image library, the market reacted negatively, possibly due to a lack of disclosed financial details, demonstrating investor uncertainty about the agreement’s long-term financial impact.

Perplexity AI has launched Comet, its AI-powered web browser, globally as a free service, challenging tech giants in the AI-enhanced browsing arena. Comet, initially a premium feature, aims to simplify web tasks with AI assistance. This free release is a strategic move to expand Perplexity’s user base amid competition from Google, OpenAI, and Anthropic, who are also developing AI-driven browser technologies. Perplexity is known for its AI search engine and revenue-sharing with publishers. Future plans include a mobile version and background processing capabilities.