Snap Bets Big on AR Glasses with New Subsidiary

After more than a decade of development, Snap is doubling down on its AR glasses ambitions with a move that signals serious intent: launching a dedicated subsidiary called Specs Inc. focused exclusively on its augmented reality hardware.

The timing isn't coincidental. While Snap has been quietly iterating on its Spectacles since 2011, competitors like Meta have surged ahead in the smart glasses race, partnering with established eyewear brands and capturing growing consumer demand. Now, with a consumer launch planned for later this year, Snap is reorganizing to compete more effectively.

The Long Road to Market

Snap's AR glasses journey has been anything but straightforward. The company first offered consumer versions in 2018, but since 2024, the fifth-generation hardware has been developer-only. This strategic retreat allowed Snap to focus on building the software ecosystem that could make or break the consumer experience.

The latest Specs run on Snap OS, which received a major update last September. The operating system now includes an improved browser, AI-powered "spatial tips" that provide contextual information about objects you're viewing, and a travel mode for translating foreign signs and menus. Four cameras enable hand tracking and power the Snap Spatial Engine, which projects AR imagery into your field of view.

During a recent demo at CES, the glasses demonstrated their collaborative potential—two users wearing different headsets could see the same AR content in shared physical space, opening possibilities for multiplayer gaming and social experiences that feel genuinely novel compared to smartphone-based interactions.

The Competition Heats Up

Meta's aggressive push into smart glasses has changed the competitive landscape dramatically. By partnering with EssilorLuxottica (owner of Ray-Ban and Oakley), Meta gained access to established distribution networks and consumer trust in eyewear brands. Their Ray-Ban Meta glasses have found traction in the US market, proving consumer appetite exists.

Snap's response—creating Specs Inc. as a separate subsidiary—suggests the company recognizes it needs "greater operational focus and alignment" to compete. This organizational structure mirrors how Meta and Apple have approached their AR/VR initiatives, treating them as distinct business units with dedicated resources.

Hardware Challenges Remain

The current Specs prototype weighs nearly 8 ounces—significantly heavier than regular glasses—and tends to heat up during extended use. Snap acknowledges the form factor will change before public launch, but these physical constraints highlight the fundamental challenge facing all AR glasses makers: balancing functionality with wearability.

The weight issue isn't just about comfort—it affects adoption. Consumers won't wear glasses that feel cumbersome or draw unwanted attention. Meta's success with Ray-Ban glasses stems partly from their familiar appearance and reasonable weight, even with limited AR capabilities.