Snap Launches Specs Inc., A New Smart Glasses Subsidiary

Snap Inc., the company behind the multimedia social media and instant messaging app Snapchat, just announced its entry into the smart glasses arena with the establishment of Specs Inc.

Specs Inc. is a wholly-owned "distinct subsidiary within Snap Inc." The idea of creating it as an independent subsidiary is that it allows for dedicated growth in the augmented reality (AR) smart glasses space.

Or in the words of Snap, it "provides greater operational focus and alignment, enables new partnerships and capital flexibility including the potential for minority investment, allows us to grow a distinct brand, and supports clearer valuation of the business as we work towards the public launch of Specs later this year."

This strategic move marks a major step for Snap as it looks to capture a larger share of the fast-growing wearables market and position itself as a competitor to larger rivals, such as Meta.

In the past couple of years, smart glasses have gained tremendous popularity. A large part of this boom is down to a new set of capabilities powered by artificial intelligence (AI) technology. 
 

TL;DR

• Snap establishes Specs Inc. as a new subsidiary focused on AR smart glasses.
• Specs will allow for minority investment and create nearly 100 new positions.
• Snap’s AR glasses feature an "intelligence system" to assist users with tasks.
• The company has invested over $3 billion over 11 years in AR technology.

Specs Inc. Marks A New Era For Snap's AR Vision

The creation of Specs Inc. highlights Snap’s growing commitment to AR and wearables. The subsidiary will not only allow Snap to focus on its AR smart glasses more intently but will also open up opportunities for external investment to help drive innovation in the space.

Snap aims to build a distinctive brand under the Specs banner while enabling clearer valuation as it works towards the public launch of its first product later this year.

Post reveal, Snap's shares rose over 2%.

 

What Makes Specs Different?

Snap's Specs smart glasses will feature see-through lenses that add digital objects to the physical world in 3D, allowing users to interact with their environment in new ways. The glasses will enable voice and gesture controls, creating a more natural way of interacting with both the digital and physical worlds simultaneously.

Snap envisions Specs as a tool that keeps users present in the moment while enhancing their experiences through AR.

The smart glasses are expected to feature Snap's proprietary and first-of-its-kind Intelligence System, which leverages its understanding of the user to help them complete tasks on their behalf, while protecting and respecting their privacy. 

"Specs do the opposite, keeping you present in the moment, and bringing you together with friends, family, and coworkers through shared experiences like running around in the backyard playing capture the flag, learning about chemistry by simulating reactions, or reviewing virtual designs of a new product together as a team," said Snap. 

The glasses will also be compatible with apps that developers are already building with Specs, further expanding their utility across education, gaming, and productivity.
 

Snap Has A Long History Of AR Innovation

Snap has been actively investing in AR for over a decade, with the company dedicating more than $3 billion over 11 years to the development of its smart glasses, as per details provided by Spiegel at the Augmented World Expo last year.

Snap’s move comes at a time when smart glasses, particularly those powered by AI, are gaining significant traction.

Meta, one of Snap’s biggest competitors, has already partnered with Ray-Ban and Oakley to produce its smart glasses.
   

What's Down The Road For Snap?

Specs Inc. is actively recruiting for nearly 100 global positions, signaling Snap’s commitment to building a strong team to support the upcoming launch.

The company is also opening the door to minority investment, which will allow external stakeholders to get involved as Snap grows the business.

With the launch of Specs smart glasses expected later this year, the new subsidiary is laying the groundwork for a product that could change how users interact with their surroundings, while creating an experience that is more seamless and intuitive.