Snap Explores Outside Funding for AR Glasses After $3 Billion Investment, Aims for 2026 Consumer Launch

Santa Monica, California – Snap Inc., the parent company of Snapchat, is reportedly considering external funding for its augmented reality (AR) glasses, Spectacles, following a substantial $3 billion investment into the project. The move, initially reported by The Information and tweeted by Jessica Lessin, signals a strategic shift as Snap prepares to launch its first consumer-focused AR glasses, dubbed "Specs," in 2026, aiming to compete in the burgeoning AR market.

Snap has poured significant resources into Spectacles over nearly a decade, evolving the device from simple camera-equipped eyewear in 2016 to advanced AR glasses. The latest iteration, Spectacles 5, unveiled in September 2024, is a developer-focused model featuring a 46-degree stereo display, hand-tracking, voice input, and the proprietary Snap OS. This version is designed to foster a robust ecosystem of AR experiences, or "Lenses."

The company's long-term vision for AR is ambitious, with CEO Evan Spiegel describing the upcoming consumer "Specs" as "the most advanced personal computer in the world." These future glasses are expected to be lighter and smaller than previous models, integrating AI capabilities from partners like OpenAI and Google Gemini for real-time text translation, currency conversion, and other interactive features. Snap aims to differentiate itself by prioritizing on-device AI processing to enhance user privacy.

Despite the heavy investment and technological advancements, Spectacles have yet to achieve mainstream success. Past versions faced challenges, including a $40 million write-off of unsold inventory in 2017, and the current Spectacles 5 is primarily available to developers for a $99 monthly fee. Snap's stock has seen fluctuations, and the company has faced internal challenges, including recent layoffs and concerns over Gen Alpha's engagement with the Snapchat app.

The decision to seek outside investment comes as Snap navigates a competitive landscape dominated by tech giants like Meta and Apple. Meta has invested over $10 billion annually in AR/VR and plans its own consumer AR glasses, code-named Artemis, for 2027. Apple has also entered the mixed-reality space with its Vision Pro headset. Snap's strategy is to leverage its extensive developer community, which has created over 4 million Lenses, and its unique approach to AR to carve out a significant market share.