Snap's Perplexity Deal: Desperate or Genius? (Spoiler: Probably Desperate)
Okay, so Snap's latest Hail Mary is partnering with Perplexity for a cool $400 million. Four. Hundred. Million. Let's just unpack that for a second. They're paying an AI search engine to… what, make Snapchat users even more glued to their phones? Because that's exactly what the world needs right now.
Is This the Beginning of the End?
Evan Spiegel says this partnership reflects a "shared vision for the power of AI to enhance discovery and connection." Translation: "We're bleeding users, and we're hoping this shiny new AI thing will distract everyone from the fact that our platform is basically a ghost town for anyone over 25." I mean, let's be real, who actually uses Snapchat for anything other than sending filtered selfies and the occasional disappearing meme?
And Perplexity? Don't even get me started. Another AI-powered "answer engine" promising to revolutionize search. As if Google ain't already cornered that market. So, Snap is betting big on a company that's trying to unseat a tech behemoth. Smart move? I highly doubt it.
It's like watching two drowning guys cling to each other, hoping the combined weight won't drag them both down.
Speaking of drowning, I'm still trying to figure out how my local coffee shop can charge $7 for a latte. Seven freakin' dollars! Is this some kind of elaborate social experiment to see how much caffeine-addicted millennials are willing to pay before they revolt?
The Numbers Don't Lie (Or Do They?)
Snap's Q3 earnings did beat expectations, and they're patting themselves on the back for reaching 943 million monthly active users. But let's not forget they also announced a $500 million share repurchase program. Which, correct me if I'm wrong, is usually what companies do when they think their stock is undervalued and they want to artificially inflate the price. So, are things really as rosy as they're trying to make it seem? Snap Soars On Q3 Earnings, $500 Million Stock Buyback - Snap (NYSE:SNAP)
And they are boasting about 75% of 13-34 year olds using Snapchat in over 25 countries. Offcourse, that's their prime demographic. But how many of those users are actually engaged? How many are just passively scrolling through stories, half-paying attention while they're also on TikTok and Instagram?
Plus, this whole Perplexity integration is slated for "early 2026." That's like, a century away in tech years. Who knows what the landscape will look like then? Maybe we'll all be living in the metaverse, communicating through brain implants, and Snapchat will be a distant memory.
Then again, maybe I'm just being cynical. Maybe this is a stroke of genius. Maybe Perplexity will actually bring something new and valuable to the Snapchat ecosystem. Maybe pigs will fly.
But What About Privacy?
Oh, and let's not forget the privacy implications. Because of course, "Snapchatter messages sent to Perplexity will help enhance personalization on Snapchat." Enhance personalization? Please. What they really mean is "We're going to Hoover up even more of your data and sell it to the highest bidder." I mean, give me a break.
And this cookie notice thing? It's pages and pages of legal jargon designed to confuse the average user into blindly accepting everything. They track everything - your browsing habits, your location, your interactions with ads... it's enough to make you want to throw your phone into a lake.
This Smells Like Another Zuck Move...
Look, Snap is desperate to stay relevant. They're throwing money at AI like it's the magic bullet that's going to solve all their problems. But let's be honest, this feels like another overhyped tech trend that's destined to fizzle out. Mark my words: in a year, nobody will remember this Perplexity deal, and Snap will be onto the next shiny object. It ain't gonna work.
