Snap Is Spinning Off Its Augmented Reality Glasses Division Into A New Independent Subsidiary
Snap Inc. is making a major organizational change by separating its augmented reality hardware team into a standalone company. This new entity will be known as Specs Inc. and is set to function as a wholly owned subsidiary of the parent corporation. The strategic move allows the hardware division to operate with more autonomy while pursuing outside investment opportunities. Executives believe this structure will enable the team to innovate faster in the rapidly evolving wearable technology sector.
The social media giant has poured roughly 3 billion dollars into developing augmented reality technology over the last decade. This massive financial commitment has often weighed down the profitability of the core advertising business. Creating a separate entity helps isolate these high hardware costs from the main balance sheet. Snap intends to invite external investors to purchase minority stakes in the new subsidiary to fund future development.
The primary mission of Specs Inc. is to bring the next generation of ‘Specs’ glasses to the consumer market in 2026. These upcoming devices represent a significant evolution from the camera-equipped ‘Spectacles’ that the company sold in the past. The new hardware is described as a fully immersive wearable computer that is light enough for daily use. It runs on a dedicated platform called Snap OS that allows users to overlay digital content onto the physical world.
The market for smart glasses has become increasingly crowded with powerful competitors like Meta and Apple. Meta has gained traction with its Ray-Ban smart glasses while Apple focuses on high-end mixed reality headsets. Snap aims to differentiate its product by offering a standalone device that balances performance with portability. The company hopes that a dedicated subsidiary will help it compete more effectively against these deeper-pocketed rivals.
Snap recently shared a fifth-generation version of the glasses exclusively with software developers to test the waters. These developer units featured advanced capabilities such as hand tracking and a transparent display system. Engineers have used the feedback from this limited release to refine the hardware for the broader mass market. The goal is to create a seamless experience that feels less like a gadget and more like a natural extension of vision.
Specs Inc. is currently hiring for nearly 100 new positions to support its aggressive growth plans. The subsidiary will have its own distinct leadership team to streamline decision-making and partnerships. This structure gives the hardware group the agility of a startup while retaining the support of a major tech company. It also signals to Wall Street that Snap is serious about managing its capital efficiency.
CEO Evan Spiegel remains a vocal proponent of augmented reality as the next major shift in personal computing. This restructuring effort demonstrates that the company is committed to seeing its hardware vision through to maturity. The separation creates a distinct brand identity for the glasses separate from the Snapchat social media app. Industry analysts will be watching closely to see if this new structure leads to a commercially successful product.
Please let us know what you think about this new direction for Snap’s hardware business in the comments.
