"Google Glass partner" China-based XReal raises $100 million.
Chinese smart glasses manufacturer XReal recently completed a new round of financing worth $100 million, with a valuation exceeding $1 billion.
On January 9th, XReal co-founder and CEO Chi Xu revealed in an interview with Bloomberg TV that the $100 million round was backed by “supply chain partners” and other undisclosed supporters.
This week at the CES exhibition in Las Vegas, XReal unveiled two new glasses products, including an upgraded entry-level model, and announced an expanded partnership with Google’s parent company, Alphabet. Xu said the joint Android XR smart glasses project is progressing as planned.
This financing comes at a time when competition in the smart glasses sector is heating up. Meta leads the market with its AI-powered Ray-Ban glasses. Apple is expected to launch its first smart glasses this year, and many companies showcased various wearable device concepts at CES.
Joint Product Development with Google
XReal’s collaborative project with Google is scheduled for launch in 2026. Xu explained the division of labor in the interview:
We are very skilled at manufacturing optical modules and chips. Google excels at building AI and operating systems.
He emphasized that the best glasses hardware comes from collaboration rather than a single company handling everything alone.
Wallstreetcn mentioned that on December 9th last year, Google officially launched the Android XR platform. At the launch event, Google showcased Project Aura, a jointly developed effort with XReal, which is the first AI glasses to feature Gemini and is planned for release in 2026.
Project Aura is expected to be priced below Apple’s Vision Pro and Samsung’s Galaxy XR headset. With Gemini AI, users can engage in context-aware conversations, device control, real-time translation, and visual search.
Analysts believe this combination of on-device AI and XR devices could drive the industry into a period of explosive growth.
Competing with Tech Giants
XReal is facing increasingly fierce competition from technology giants.
Meta is leading the category with its AI-powered Ray-Ban glasses, which last year added a premium $799 model featuring a built-in display and a unique wristband controller, exploring consumer preferences.
According to Bloomberg, Apple is expected to launch its first smart glasses as early as this year. Apple has shelved a comprehensive overhaul of the Vision Pro headset and is now prioritizing development of AI glasses similar to Meta's. The Vision Pro headset, previously priced at $3,499, saw poor sales, and Xu commented about Vision Pro:
The biggest problem with Vision Pro is that it’s too expensive and too heavy. We can deliver 80% of a similar experience through lighter, more affordable products.
Form Factor Debate: Glasses or Earphones?
At CES, several companies explored different form factors for smart wearables.
Razer introduced a concept earphone with an integrated camera, expected to launch this year, which can analyze users’ surroundings. Lenovo-owned Motorola showcased a concept product in the form of a pendant necklace equipped with a camera.
Razer CEO Min-Liang Tan said in a Bloomberg interview earlier this week that earphone-style devices may appeal more to some consumers, since not everyone wears glasses and earphone-mounted cameras can still maintain an eye-level perspective.
Xu said he met with Tan a few days ago and discussed this topic, but he believes glasses are the best solution. Xu commented:
This is a big enough market; I don’t think the form factor will become unified.
He also described the smart glasses category as “a race open to everyone.”
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