Snap in Talks to Raise $1 Bn for AR Glasses Unit Amid 'Existential' Push
The company plans to produce approximately 100,000 units of next year’s Specs model, priced around $2,500 each.
Snap Inc. is reportedly seeking to raise around $1 billion to bolster its augmented reality (AR) glasses division, a move described by insiders as an “existential” fundraising push.
According to Sources.news, the talks involve multiple investors, including Saudi Arabia’s Public Investment Fund (PIF).
The AR glasses unit, set to be spun off into a separate subsidiary similar to Alphabet’s Waymo, is part of Snap’s strategy to enter next-generation computing through wearable tech. The company plans to produce approximately 100,000 units of next year’s Specs model, priced around $2,500 each.
Snap’s publicity noted that while they are exploring financing, their spokesperson stated: “We do not need to raise money to execute against our plans to publicly launch Specs in 2026, but remain open to opportunities that could accelerate our growth.”
The potential funding comes as Snap navigates competition from industry rivals like Meta and Apple in the wearable and spatial computing space. The company has already invested over $3 billion into AR hardware development, signaling long-term commitment despite near-term financial pressure.
Last year, it unveiled its fifth-generation AR Spectacles and a new smart glasses OS, betting that sleek augmented reality wearables will eventually replace smartphones despite the slow adoption of mixed-reality devices.
While the talks are ongoing and no deal has been finalised, the strategic direction is clear: Snap aims to transform beyond mobile social networking into mainstream AR computing, using the new financing to scale its hardware ambitions and capture a larger share of the emerging market.
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