Xreal Teams Up with Google on Smart Glasses, Claims to Have Overcome Industry Challenges

The quest for smart glasses has been a longstanding dream in Silicon Valley. The concept is fascinating: picture a lightweight computing device worn on the face, eliminating the need to constantly check phones for connectivity. Fans of science fiction—a considerable contingent of the tech community—can easily visualize this idea.

Yet, despite its appeal, this industry has primarily functioned as a financial burden over the last decade, consuming substantial funds while yielding little in return.

“Everyone is losing money,” remarked Chi Xu, founder and CEO of Xreal, a smart glasses company in a longstanding collaboration with Google. I had the opportunity to speak with Xu at Google’s I/O conference in Mountain View last week, where he elaborated on Xreal’s Project Aura, their latest endeavor aimed at launching a line of XR glasses that resonate with consumers.

“Our project demands a lot,” he mentioned.

Over the years, the obstacles related to smart glasses have been evident: cumbersome, uncomfortable designs coupled with software that offers limited functionality. Nevertheless, many industry insiders, including Xu, are hopeful that a significant breakthrough may be on the horizon.

This potential inflection point can be linked to Meta, whose partnership with Ray-Ban in 2023 yielded one of the few smart glasses lines that saw considerable sales. (It’s important to note that the division responsible for these glasses, Reality Labs, continues to incur substantial losses.)

With improvements in both design and software, Xu is optimistic that Xreal may finally take the lead in the market. “You need all the key components—hardware, operating system, and an exceptional user interface,” Xu detailed.

Xreal’s latest model, Aura, features wired smart glasses with OLED displays, enabling users to stream high-resolution videos directly through the lenses. However, Aura requires a “puck”—a compact computer that powers the glasses’ features, which users can easily carry in their pocket.

In return for the puck’s slight inconvenience, users gain access to a wider range of interactive experiences, including a captivating Google Maps application, VR YouTube videos, and a “painting app” that facilitates holographic image creation through hand tracking. Gaming and basic web browsing functions are also expected to utilize hand tracking.

“Whether you’re following a floating recipe while cooking, setting up a personal workspace at a café, or enjoying a virtual big screen movie at home, the experience is seamless,” the company asserts.

Xu also predicts that the device will appeal to both casual users and professionals. “It’s not merely about watching an NBA game in holograms; you can also be productive at a coffee shop,” he stated.

Currently, the glasses are available exclusively to developers, with a commercial launch slated for later this year. Xreal is also gearing up for an IPO expected before the end of 2026, although Xu remained noncommittal about the details.

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