Snap officiallyAnnounceThe company will spin off its AR (Augmented Reality) glasses business into a wholly-owned subsidiary called "Specs Inc." The main purpose of this strategic shift is to more flexibly seek external investors and partners to support the massive funding required for hardware development and to compete with its financially strapped rival, Meta.
In order to raise funds and for brand independence
As early as mid-2025,The Information websiteReports had previously indicated that Snap was considering spinning off its hardware division, and now those rumors have come true. Snap stated that spinning off the Specs business would allow it to operate as an independent brand, while also making it easier to attract venture capital firms interested in AR hardware but unwilling to invest in Snap's core social media business.
After all, Meta burns through hundreds of billions of dollars annually on Reality Labs. For Snap, which has a relatively small market capitalization and cash flow, relying solely on its core business revenue to support AR hardware R&D would put immense financial pressure on them.
AI-powered next-generation glasses to debut this year
Along with the establishment of the new company, the product roadmap was also revealed. Specs is currently recruiting for over 100 positions globally and plans to launch this year.Next-generation stand-alone AR glasses.
Snap CEO Evan Spiegel previously revealed that the new glasses will be lighter, smaller, and more powerful than the current developer version. The official announcement also specifically emphasized the role of AI, stating that the next-generation Specs operating system will deeply integrate AI functions, proactively providing assistance based on what the glasses "see" and the user's behavioral habits.
Snap believes that, unlike mobile phones or computers, AR glasses can overlay digital tools onto the real world (such as replacing a physical whiteboard with a virtual one), allowing people to maintain real-world interactions with family and friends while using AR glasses.
