New Delhi, Nov. 6 -- Snap stock price jumped more than 25% in extended trading on Wednesday after the company announced a $400 million partnership with Perplexity AI Inc, along with a third-quarter revenue beat.

Perplexity will pay Snap $400 million over one year in cash and equity. Revenue from the partnership is expected to start contributing to results next year. Perplexity's answer-engine will be integrated into Snapchat's Chat interface beginning in 2026.

Snap said that its existing My AI chatbot will also be available to users.

Snap's revenue rose 10% to $1.51 billion the third quarter ending September 30, beating analysts' average estimate of $1.49 billion, according to data compiled by LSEG. Its net loss narrowed to $104 millio...