The pushback follows pressure from Irenic Capital Management, which has urged the Snapchat parent to reconsider its commitment to the unit. The activist firm argues that Snap should isolate the hardware business, noting that the company has already poured more than $3.5 billion into the project. Spiegel, however, maintains that his mandate is to build for the future rather than chasing immediate profitability.

To address concerns over the unit's financial weight, Snap carved the division into a standalone subsidiary this past January—a move that potentially opens the door for outside investment. While the company intends to keep the operation in-house for now, Spiegel hinted that more details regarding potential partnerships will arrive later this year, suggesting a shift toward a collaborative model for the next phase of the technology.