Snap and Perplexity have ended a deal to integrate the start-up’s AI-powered answer engine into the social-media platform. The deal, announced last year, required the AI firm to pay Snap $400 million in cash and equity over one year.

The feature began testing in Snapchat but was never fully rolled out, according to a help page. Perplexity said the companies determined that the original implementation was “not the right fit for each company’s product goals” and have resolved the matter amicably on confidential terms. According to a spokesperson: “Perplexity continues to value Snapchat as a platform for reaching key audiences, remains active on the Snap platform, and expects to continue using Snap’s advertising products.”

Snap revealed this week that Snapchat’s global daily active users rose 5 per cent year-on-year to 483 million. The company said the growth was driven by new features across the app, including Snap Map and its Lenses AR filters.

Snap said last month it plans to cut around 1,000 jobs — approximately 16 per cent of its full-time workforce — in order to boost efficiency and drive profitability.

Meanwhile, the company is edging closer to unveiling its new AR glasses, which will be the first consumer-ready version of Specs.