Stock Markets January 28, 2026

Snap Spins Out AR Glasses Unit as Specs Inc to Sharpen Focus Ahead of 2026 Launch

New wholly owned subsidiary intended to streamline operations, attract partners and allow capital flexibility as Snap prepares a smaller consumer-focused AR headset

By Leila Farooq
Snap Spins Out AR Glasses Unit as Specs Inc to Sharpen Focus Ahead of 2026 Launch

Snap said Wednesday that its augmented reality glasses development effort will operate under a newly formed, wholly owned subsidiary named Specs Inc. The company said the new structure is designed to deliver "greater operational focus and alignment" as it readies Specs AR glasses for a planned 2026 launch. Snap also highlighted the subsidiary's role in attracting partners and providing capital flexibility, including the option for minority investment. While the firm did not disclose how many staff will transfer to Specs Inc, hiring is underway for nearly 100 positions.

Key Points

  • Snap has converted its AR glasses development group into a wholly owned subsidiary named Specs Inc to increase operational focus.
  • The new structure is intended to attract external partners and offer capital flexibility, with the company mentioning the potential for minority investment.
  • Specs Inc is hiring for nearly 100 positions; Snap confirmed plans to release sixth-generation AR glasses in 2026 but has not announced specific launch dates or pricing.

Snap announced on Wednesday that the team responsible for developing its augmented reality glasses will now function as a fully owned subsidiary called Specs Inc. According to the company, making the unit a separate legal entity is intended to concentrate operational attention and improve alignment as it prepares to bring the next generation of AR eyewear to market.

Snap said the subsidiary structure will help the company draw in new collaborators and provide "capital flexibility," explicitly noting the "potential for minority investment" as part of that flexibility. The company did not provide further details on the mechanics of such investment options.

Details about the size of the new unit were not disclosed. Snap did confirm, however, that Specs Inc is actively recruiting, with nearly 100 open positions listed. The company has not specified how many existing employees will move into the subsidiary under the new arrangement.

Snap previously signaled in June that it plans to release the sixth-generation version of its AR glasses in 2026. Beyond that timing, the company has not announced firm release dates or pricing information. Snap has said these upcoming glasses will be engineered to be smaller and lighter than past models and will target the consumer market.

The formation of Specs Inc formalizes the organization responsible for that product road map. By establishing a wholly owned subsidiary, Snap is positioning the glasses program to operate with a degree of structural separation from other parts of the company while remaining under full ownership.

Key operational aims described by Snap include increasing focus and alignment within the team working on the glasses, enabling collaboration with external partners, and maintaining flexibility around capital arrangements. What those partner relationships might look like and whether outside investors will take minority stakes remain unspecified in the company's statements.

For now, the publicly disclosed facts are limited to the corporate restructuring, the hiring activity for nearly 100 roles, the 2026 product timing for the next-generation glasses, and the lack of disclosed pricing or exact launch dates.

Risks

  • Timing and pricing remain uncertain since Snap has not disclosed specific release dates or pricing for the 2026 AR glasses - impacts consumer technology and hardware markets.
  • The exact staffing level of the new subsidiary is unclear because Snap did not disclose how many employees will be part of Specs Inc - impacts labor and recruitment dynamics within the technology sector.
  • Potential external investment or partnerships are described as possibilities but are not guaranteed, creating uncertainty around capital structure and partner involvement - impacts corporate finance and strategic partnerships in tech hardware.

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