Xreal Raises $100 Million as Smart Glasses Competition Intensifies with Google Partnership

Smart Glasses Pioneer Xreal Raises $100 Million in New Funding

Xreal is collaborating with Alphabet Inc.'s Google on a pair of smart glasses running Google's Android XR platform that they plan to launch sometime in 2026. Smart glasses maker Xreal Inc. recently raised $100 million, its chief executive officer said, adding to the firm's coffers as competition in the category heats up. In an interview with Bloomberg Television, co-founder and CEO Chi Xu said the funding came from "supply chain partners" and other backers who he declined to disclose. The startup, which has an overall valuation above $1 billion, announced two new sets of glasses at the CES trade show in Las Vegas this week, including an upgraded entry-level pair, and said it has extended a partnership with Alphabet Inc.'s Google. The Chinese company and US search giant have been collaborating on a pair of smart glasses running Google's Android XR platform that they plan to launch sometime in 2026. The project is proceeding on schedule, Xu said in the interview. "We're really good at building optical modules and building chips. Google, they're really good at building AI and operating systems," Xu said, adding that he believes the best glasses hardware will result from collaboration -- not one company trying to do everything. At CES, a range of companies have showcased new wearables and AI-powered gadgets. Razer Inc. debuted concept headphones expected to launch this year, which feature built-in cameras for analyzing a user's surroundings. Lenovo Group Ltd.'s Motorola unit showed off a concept that took the form of a pendant necklace, also with a camera. Razer CEO Min-Liang Tan made the case in an interview with Bloomberg earlier this week that some consumers will prefer the headphone style since not everyone wears glasses -- and their natural position when worn on the head still allows the cameras to maintain an eye-level perspective. "I just met him a couple days ago, and we talked a little about that," Xu said of Tan, adding that he's confident glasses are the best solution. Xreal has faced mounting competition from tech giants including Meta Platforms Inc., which has led the category with its artificial intelligence-enabled Ray-Bans. Meta released a premium $799 model last year with a built-in display and unique wrist-worn band as it explores what features will resonate with consumers. "This is a big enough market, and I don't really see the form factor converging," Xu said, describing the smart glasses category as "an open race for everybody." Apple Inc. is expected to introduce its first smart glasses as early as this year after struggling to find momentum with the $3,499 Vision Pro headset, which received a minor update last fall. The company shelved an overhaul of the mixed-reality headset to prioritize AI glasses like those from Meta, Bloomberg has reported. "The challenge is it is too expensive. It is too heavy," Xu said of the Vision Pro. "We can deliver 80% of that kind of experience" in a lighter, far more affordable product, he added.

XReal Raises $100 Million and Unveils Latest Smart Glasses | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The company's latest funding came from its supply chain partners and other backers, Bloomberg reported Thursday (Jan. 8), citing a Bloomberg Television interview with XReal Co-founder and CEO Chi Xu. PYMNTS reported in February 2025 that artificial intelligence (AI) is driving a smart glasses boom, with several tech giants and about a dozen smaller companies making smart glasses and using the AI of popular large language models. AI has been a game-changer, as the latest AI-powered smart glasses are encased in traditional frame of various styles, so users don't look out of place in public, while also carrying serious electronics to power AI capabilities like online searches and translations. Over the past week, XReal unveiled two new smart glasses and two partnerships. The company introduced its XREAL 1S augmented reality (AR) glasses on Sunday (Jan. 4), saying they provide its most accessible and portable AR experiences "at an unbeatable value." This wearable device is designed for everyday users, gamers and fans of mobile entertainment. "With XREAL 1S, we're not only lowering the cost of entry, we're doing so while boosting specs and performance, and improving optics," Xu said in a press release. The company unveiled its ROG XREAL R1 AR Glasses on Monday (Jan. 5), saying these gaming glasses deliver visual performance, scale and immersion that transform the gaming experience. The company also announced that it had formed a strategic partnership with ASUS Republic of Gamers (ASUS ROG) to develop these glasses. "Our goal has always been to make spatial computing feel natural, powerful and wearable," Xu said in a press release. "By combining XREAL's leadership in lightweight XR hardware and proprietary optical systems with ASUS ROG's world-class gaming performance, we're making our goal a reality." XReal announced Tuesday (Jan. 6) that it extended its strategic partnership with Google and was named a lead hardware partner for the Android XR ecosystem. The companies will collaborate to bring the Android XR operating system to wired XR glasses and other optical-see-through devices and to expand support for Android XR development.