Snap establishes Specs subsidiary for its AR glasses

Snap has announced that its augmented reality (AR) glasses development team will now operate under a dedicated subsidiary called Specs Inc. This strategic move is designed to provide the unit with enhanced operational focus and alignment as the company prepares to unveil its latest AR glasses later this year. According to Snap, the creation of Specs Inc. will facilitate the pursuit of new partnerships and improve financial flexibility, which may include opportunities for minority investments. While the company has not disclosed the number of employees assigned to the subsidiary, it is currently in the process of hiring nearly 100 new positions. Snap had previously indicated its intention to establish such a subsidiary during an analyst call in November. Additionally, the company announced its plans to launch the sixth generation of its AR glasses by 2026, although specific details regarding the release date and pricing remain under wraps. The upcoming glasses are expected to be smaller and lighter than earlier versions, targeting the consumer market. This announcement comes at a time when competitors like Meta and Alphabet are also investing heavily in AR glasses equipped with AI capabilities. Recently, Meta launched a new version of its glasses, priced at $799, in collaboration with eyewear manufacturer EssilorLuxottica. Meanwhile, Google is set to release its own AR glasses in partnership with Warby Parker later this year. In a related development, Meta recently laid off over 1,000 employees from its Reality Labs unit, which focuses on virtual reality technology, as the company shifts its emphasis toward AI and wearable devices. This has raised concerns among developers about a potential downturn in the VR market, as reported by CNBC.