Snap Inc.’s SNAP My AI, which faced significant backlash upon its launch, has now experienced a surge in daily active users, growing 55% year-over-year in the U.S.
What Happened: On Tuesday, during Snap’s first-quarter 2025 earnings call, CEO Evan Spiegel highlighted how the feature’s improvements, such as enhanced multimodal capabilities, have fueled its growing popularity.
“These improvements in My AI responsiveness resulted in an increase of more than 55% year-over-year in the number of My AI daily active users in the U.S,” he said.
When asked where Snapchat’s My AI is headed, the CEO said Snap wants to stand out by focusing on visual communication.
In the long term, Snap is heavily investing in the integration of AI with augmented reality, he said. “We’ll have more announcements around that later this year because we really do believe that augmented reality is the ideal interface for AI.”
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Why It’s Important: Snapchat’s My AI, powered by OpenAI’s GPT models, was initially met with criticism, particularly due to its unavoidable presence at the top of chats for paying users.
Some parents also expressed concerns about the difficulty of teaching kids to differentiate between human interactions and AI, especially since the chatbot appears so lifelike, reported CNN.
Snap reported first-quarter revenue of $1.36 billion, marking a 14% increase year-over-year and surpassing Wall Street expectations, which had pegged revenue at $1.35 billion.
The company also saw strong user growth, reaching 460 million daily active users by the end of the first quarter, up 9% from the same period last year. It also crossed a key milestone with over 900 million monthly active users, bringing the platform closer to its long-term target of one billion MAUs.
Price Action: Snap shares have fallen 19.13% year-to-date in 2025 and are down 39.6% over the past 12 months. While the stock rose 2.94% during Tuesday’s regular trading session, it plunged 14.41% in after-hours trading, dropping to $7.78, according to Benzinga Pro.
In Benzinga Edge’s Stock Rankings, Snap holds a growth score of 41.30% and a momentum score of 18.48%. Click here to see how it compares with competitors.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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