Chinese smart glasses manufacturer XReal has recently completed a new $100 million funding round, achieving a valuation exceeding $1 billion. On January 9, XReal co-founder and CEO Xu Chi revealed in an interview with Bloomberg Television that the company secured this new $100 million investment from "supply chain partners" and other undisclosed supporters. This week at the CES exhibition in Las Vegas, XReal launched two new glasses products, including an upgraded entry-level model, and announced an expansion of its collaborative relationship with Alphabet, Google's parent company. Xu Chi stated that the joint Android XR smart glasses project is progressing according to schedule. This fundraising comes at a time of intensifying competition in the smart glasses sector. Meta is leading the market with its AI-enabled Ray-Ban glasses, Apple is anticipated to launch its first smart glasses product this year, and numerous companies showcased various form factor solutions for wearable devices at CES.

Collaborative Product Development with Google

The collaborative project between XReal and Google is scheduled for launch in 2026. Xu Chi explained the division of labor in the interview:

We excel at manufacturing optical modules and chips. Google excels at building AI and operating systems.

He emphasized that the best glasses hardware will result from collaboration, rather than from a single company attempting to handle all aspects itself. Wall Street News mentioned that on December 9 last year, Google officially launched the Android XR platform. During the launch event, Google demonstrated Project Aura, developed in partnership with XReal, which is the first AI glasses powered by Gemini and planned for a 2026 release. Project Aura is expected to be priced lower than Apple's Vision Pro and Samsung's Galaxy XR headsets. Utilizing Gemini AI capabilities, users will be able to engage in context-aware conversations, control devices, access real-time translation, and perform visual searches, among other functions. Analysts believe that this combination of on-device AI and XR equipment has the potential to drive the industry into a period of concentrated rapid growth.

Competing Against Tech Giants

XReal is facing increasingly fierce competition from major technology companies. Meta leads the category with its AI-powered Ray-Ban glasses, having also launched a premium model priced at $799 last year, which features a built-in display and a unique wristband-style controller, exploring consumer preferences. According to Bloomberg, Apple is expected to launch its first smart glasses as early as this year. Apple has reportedly shelved a comprehensive redesign of the Vision Pro headset to prioritize developing AI glasses similar to Meta's. Following the weak sales of the previously launched $3,499 Vision Pro headset, Xu Chi commented on the Vision Pro:

The biggest problem with the Vision Pro is that it's too expensive and too heavy. We can provide 80% of a similar experience with a lighter and more affordable product.

The Form Factor Debate: Glasses or Headphones?

At the CES exhibition, several companies showcased different explorations into the form factors of smart wearable devices. Razer introduced a concept headset with a built-in camera, expected to be released this year, which could analyze the user's surroundings. Motorola, under Lenovo, displayed a conceptual necklace pendant equipped with a camera. Razer CEO Min-Liang Tan suggested in an interview with Bloomberg earlier this week that the headset form factor might be preferable for some consumers, as not everyone wears glasses, and a headset's camera can still maintain an eye-level perspective when worn. Xu Chi mentioned that he had met with Min-Liang Tan just days ago to discuss this topic, but he remains convinced that glasses are the optimal solution. Xu Chi stated:

It's a large enough market; I don't believe the form factor will converge into a single standard.

He also described the smart glasses category as "a race that is open to everyone."