Xreal CEO says smart glasses are finally ready — and his company is leading the charge

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Xreal CEO says smart glasses are finally ready — and his company is leading the charge

For years, smart glasses have been the tech industry’s most stubborn fantasy — a vision of computing that never quite materialized. But Chi Xu, founder and CEO of Xreal, a longtime partner of Google, believes the industry has finally turned a corner. Speaking with me at Google’s I/O conference in Mountain View last week, Xu argued that the pieces are now in place for smart glasses to become a practical, desirable product.

The long, expensive road to a breakthrough

The smart glasses sector has consumed billions in investment with little to show in return. Bulky frames, limited software, and a general lack of consumer appeal have plagued nearly every attempt. ‘Everybody’s losing money,’ Xu acknowledged. ‘That’s because it’s very hard, what we’re doing.’ But the landscape is shifting. Meta’s partnership with Ray-Ban in 2023 produced one of the first models to sell in meaningful volume, even if its Reality Labs division still operates at a significant loss. That signal, combined with shrinking hardware and improving software, has given Xu confidence that Xreal can become a leader in the space.

Project Aura: Wired, but more capable

Xreal’s latest effort, Project Aura, is a set of wired smart glasses with embedded OLED displays that allow users to watch high-resolution video directly within the frames. The glasses are tethered to a ‘puck’ — a phone-shaped mini-computer that powers the experience and fits into a pocket. While the wired design introduces some awkwardness, it enables a broader range of features, including an immersive Google Maps app, VR YouTube videos, and a hand-tracking painting app that creates holographic imagery visible only to the wearer. The company also promises games and basic web browsing, all controlled via hand tracking.

From developer kits to commercial launch

Currently, Project Aura is available only to developers. Xreal plans to launch the glasses commercially later this year. Xu envisions the device being used not just for entertainment — watching NBA games in holographic format, for example — but also for productivity. ‘You could go to a coffee shop and do some work,’ he said. The company is also preparing for an IPO expected before the end of 2026, though Xu declined to provide details.

The path to profitability

Xreal has been working to improve its financial footing. Xu noted that the company has been raising gross margins while reducing marketing and sales costs. ‘Next year is the year when we could actually break even,’ he said. If successful, that would mark a rare milestone in an industry known more for ambition than for profit.

Why this matters now

The smart glasses market has long been a story of potential without payoff. But with Meta validating consumer interest, Google deepening its hardware partnerships, and companies like Xreal focusing on practical, feature-rich designs, the industry may finally be approaching an inflection point. Whether Project Aura can deliver on its promises — and whether consumers will embrace a wired form factor — remains to be seen. But for the first time in years, the smart glasses dream looks a little more real.

Conclusion

Xreal’s Project Aura represents a calculated bet that the smart glasses industry is ready for prime time. With a commercial launch later this year, an IPO on the horizon, and a clear focus on profitability, the company is positioning itself as a serious contender in a space that has humbled many before it. Whether it succeeds will depend on execution, consumer adoption, and the continued evolution of both hardware and software.

FAQs

Q1: What is Project Aura?
Project Aura is Xreal’s latest smart glasses model, featuring embedded OLED displays for high-resolution video, hand tracking, and a tethered mini-computer ‘puck’ that powers the experience.

Q2: When will Project Aura be available to consumers?
Currently available only to developers, the glasses are expected to launch commercially later in 2026.

Q3: How does Xreal plan to become profitable?
Xreal is raising gross margins while reducing marketing and sales costs. CEO Chi Xu expects the company to break even by 2027.

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