Snap Inc. announced the amicable termination of its partnership with AI startup Perplexity, which was set to integrate an AI-powered search engine into Snapchat. The deal, initially valued at $400 million, would have involved cash and equity payments over a year. Snap's current sales guidance has been adjusted to reflect no revenue contribution from Perplexity, which was expected to begin in 2026. Despite this setback, Snap reported a 12% increase in revenue for the first quarter, driven by a rise in daily active users to 483 million and strong advertising spending. The company narrowed its net loss to $89 million, down from $140 million a year earlier. However, Snap's North American market showed a decline in daily active users and slower revenue growth at 2%. CEO Evan Spiegel highlighted the company's focus on disciplined execution and future investments in intelligent eyewear, with plans to share more details at the Augmented World Expo on June 16th. This announcement follows Snap's recent decision to cut 1,000 jobs, approximately 16% of its workforce.