Snap has officially confirmed that its high-profile partnership with AI search engine developer Perplexity has been dissolved. The collaboration, which was initially announced last November, was slated to bring a $400 million influx of cash and equity to Snap over the course of a year. The agreement was intended to weave Perplexity’s conversational search capabilities directly into the Snapchat messaging experience, allowing users to query the AI engine without leaving the app.

According to Snap’s latest quarterly earnings report, the two companies ended their relationship on amicable terms during the first quarter of the year. While the integration had reached a testing phase for a limited group of users, it never saw a wider public release. Snap confirmed that its current financial guidance does not rely on any contributions from the now-defunct deal, which was originally projected to begin impacting revenue by 2026.

Despite the end of this specific venture, Snap reported positive momentum in its user engagement metrics. The platform saw its global daily active users climb 5% year-over-year to 483 million, while monthly active users reached 965 million. CEO Evan Spiegel highlighted that the company remains committed to its broader artificial intelligence strategy, focusing on upcoming innovations in hardware such as intelligent eyewear and continued improvements to its augmented reality Lenses.