Xreal, Google’s Smart Glasses Partner, Claims to Have Overcome Industry Challenges

The aspiration for smart glasses has been a persistent goal in Silicon Valley. The concept is fascinating: What if individuals could don a lightweight computing device on their face instead of continuously checking their phones to access mobile technology? Enthusiasts of science fiction, a considerable segment of the tech community, can readily visualize this scenario.

Yet, despite its appeal, this industry has primarily acted as a financial pit over the last ten years, absorbing vast investments with little to show for it.

“Everyone is losing money,” remarked Chi Xu, founder and CEO of Xreal, a smart glasses firm that has been collaborating with Google for an extended period. I spoke with Xu at Google’s I/O conference in Mountain View last week, where he elaborated on Xreal’s Project Aura, their newest effort to develop a line of XR glasses that consumers will truly desire.

“Our project is quite demanding,” he added.

Throughout the history of the industry, the hurdles associated with smart glasses have been apparent: awkward, uncomfortable designs combined with software that offers limited functionality. Nevertheless, many insiders, including Xu, believe they may be nearing a critical juncture.

This possible turning point is linked to Meta, whose collaboration with Ray-Ban in 2023 resulted in one of the few smart glasses lines to see substantial sales. (It’s important to note that the division overseeing these glasses, Reality Labs, continues to operate at a considerable loss.)

With improvements in design and software, Xu is hopeful that Xreal could finally take the forefront in the market. “You must have all the key components — the hardware, the operating system, and an exceptional user interface,” Xu explained.

Xreal’s latest model, Aura, boasts wired smart glasses featuring OLED displays, enabling users to enjoy high-resolution videos directly through the frames. However, Aura necessitates a “puck” — a mini computer that powers the glasses’ functions, which users can easily carry in their pocket.

In return for the puck’s inconvenience, users gain access to a wider range of engaging experiences, including an immersive Google Maps app, VR YouTube videos, and a “painting app” that allows users to create holographic images via hand tracking. Games and basic web browsing features are also expected to be available using hand tracking.

“Whether you’re following a floating recipe while cooking, establishing a personal workspace at a café, or watching a movie on a virtual big screen at home, the experience is fluid,” the company claims.

Xu additionally foresees the device appealing to both casual users and professionals. “It’s not just about experiencing an NBA game in holograms; you could also be productive in a coffee shop,” he noted.

At present, the glasses are only offered to developers, but a commercial launch is scheduled for later this year. Xreal is also gearing up for an IPO anticipated before the close of 2026, although Xu remained tight-lipped about details.

For now, the company is focused on achieving profitability. Xu indicated that Xreal has been enhancing its gross margin while decreasing marketing and sales expenses. “Next year may be the year we finally reach break-even,” he added.