Snap has reached a $400 million deal with Perplexity to incorporate its AI search engine into Snapchat, as stated by Bloomberg on Wednesday. The arrangement specifies that Perplexity will grant Snap a combination of cash and equity in exchange for access to Snapchat’s more than 900 million monthly active users.

Snap currently provides an AI chatbot known as My AI, which will continue to be available. However, the new AI search fueled by Perplexity is set to be introduced in a more prominent, default location within the Snapchat app beginning next year, per Bloomberg. “We definitely see significant potential to expand Snapchat’s collaborations with more AI partners in the future,” noted CEO Evan Spiegel during an interview with the publisher.

Perplexity is an AI enterprise that employs multiple LLMs to develop a search-oriented AI system. With over 20 million active users, it offers a variety of products, including search, a financial hub, and an AI browser named Comet. The company has encountered several lawsuits, with claims of copyright violations from entities like Dow Jones, the New York Post, and Nikkei, in addition to allegations from Reddit of illegally scraping its data.

This agreement comes a day after Apple reportedly finalized a deal to utilize Google Gemini to enhance its next-generation, smarter Siri.