Xreal, Google’s smartglasses partner, thinks it has finally mastered this notoriously tricky industry
Source: TechCrunch
The Long‑Running Dream of Smart Glasses
The smart glasses industry has long been a tortured dream of Silicon Valley. The premise is appealing enough: what if, to enjoy the benefits of mobile computing, people didn’t have to stare at their phones all day and could instead wear a lightweight computing device on their face? Science‑fiction fans—a strong demographic in the tech industry—can see this vision perfectly.
However, for much of the last decade the sector has resembled a financial black hole into which gargantuan investments have been sunk, yielding little to no profit.
“Everybody’s losing money,” said Chi Xu, founder and CEO of Xreal, a longtime Google partner.
Xreal’s Project Aura
I met Xu at Google’s I/O conference in Mountain View last week, where he promoted Xreal’s Project Aura—the company’s latest effort to create functional XR glasses that people actually want to use.
“That’s because it’s very hard, what we’re doing,” he said.
For years, smart glasses suffered from bulky, uncomfortable, socially awkward form factors and negligibly beneficial software. Now, insiders—including Xu—believe the industry is reaching an inflection point.
Meta’s Influence
The turning point is partly tied to Meta’s 2023 partnership with Ray‑Ban, which launched one of the first lines of models that actually sold a significant number of units. (The division responsible for the glasses, Reality Labs, still operates at a massive loss—see the CNBC report and TechCrunch analysis.)
Hardware and User Experience
Xreal’s newest model, Aura, is a wired smart‑glasses system with OLED displays embedded in the frames, allowing high‑resolution video playback directly in the lenses. The glasses are tethered to a “puck”—a phone‑shaped mini‑computer that powers the experience. The puck can be slipped into a pocket, mitigating the bulk of the glasses themselves.
Because of the puck, Aura offers a broader range of experiences, including:
- An immersive Google Maps app
- VR YouTube videos
- A “painting app” that uses hand tracking to create holographic imagery visible only to the user
- Hand‑tracked games (see the YouTube demo)
- Basic web‑surfing functionality
“Whether you are following a floating recipe while cooking, setting up a private workspace at a coffee shop or on a flight, or watching a movie on a virtual big screen at home, the experience is seamless,” the company promises (source).
Target Audiences
Xu envisions Aura being used not only by casual consumers but also by professionals:
“It’s not just about watching the NBA game in a hologram type of format; you could also go to a coffee shop and do some work.”
Market and Financial Outlook
- Availability: Currently limited to developers; a commercial launch is planned for later this year.
- IPO Plans: Xreal is working toward an IPO before the end of 2026, though Xu declined to share details.
- Profitability: The company is raising its gross margin while cutting marketing and sales costs. Xu predicts that next year could be the year they break even.
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Lucas is a senior writer at TechCrunch, covering artificial intelligence, consumer tech, and startups. He previously covered AI and cybersecurity at Gizmodo. You can contact Lucas by emailing lucas.ropek@techcrunch.com.