Snap is Separating Its AR Glasses Business into a Separate Company Named Specs Inc.
Snap is transforming its augmented reality glasses division into a completely new and independent company owned entirely by itself. This move aims to increase investment and partnership opportunities to better compete with rivals like Meta.
AR Glasses Business Becomes an Independent Brand
Snap Inc. has decided to spin off its augmented reality (AR) glasses business into a new, wholly-owned, and independent subsidiary named 'Specs Inc.' This restructuring will allow Snap to more easily secure investment and partnerships for its wearable technology products, while enabling the Specs brand to grow under the Snap umbrella but with a separate identity.
Competition and Investment Need Are Key Reasons
The decision is driven by intense competition in the sector and development costs. As reported in mid-2025 news, Snap was seeking ways to attract external capital for its AR glasses business to compete with rivals like Meta, which have much larger budgets. The establishment of Specs Inc. is seen as a concrete step in this strategy.
Emphasis on Artificial Intelligence and Practical Utility
The company stated that Specs glasses are launching at a pivotal time when artificial intelligence is transforming how computers are used. The glasses' operating system aims to help get things done faster based on what they see and user habits. Furthermore, because it overlays digital tools onto the real-world view, it is claimed to allow users to be more 'present' in moments with family and friends, unlike phones and computers. Tools like Google's NotebookLM: A Practical AI Assistant That Works With Your Own Resources also highlight the importance of user-centric, practical AI applications.
Sustainability and New Hires
Snap believes Specs glasses' digital tools could help reduce waste over time by replacing physical objects (like instruction manuals, whiteboards). While the company did not disclose whether the new subsidiary has already found investors, it announced hiring for over 100 positions worldwide. The news Capital One Acquires AI-Focused Financial Platform Brex for $5.15 Billion reveals how active investment and acquisition activity for AI-focused companies is in the sector.
Next-Generation Glasses on the Way
The new company is expected to launch Snap's next generation of standalone AR glasses later this year. In a previous statement, company CEO Evan Spiegel indicated that this new model would be lighter, have a much smaller form factor, and possess more capabilities than the previous smart glasses, which were mostly aimed at developers. Such aggressive moves by tech giants in the AR and AI fields continue to shape industry dynamics, as also discussed in our article titled Ad Tests and Company Dramas in the AI Sector.
