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Xreal says smart glasses may finally be ready for the mainstream
After years of bulky headsets and failed hype cycles, Xreal believes the XR industry is nearing a breakthrough moment.
Instead of operating independently, the glasses remain connected to a small external computing puck that powers the experience. Users are expected to carry the phone-sized accessory in their pocket while using the glasses. (Image: Xreal)
For years, smart glasses have been one of Silicon Valley’s most ambitious ideas that never quite worked. The pitch sounded futuristic and simple: instead of constantly staring at a smartphone, users could wear lightweight glasses that display digital information directly in front of their eyes.
But despite billions of dollars in investments, the industry has struggled with bulky designs, limited software usefulness, and devices that often felt more awkward than practical.
Now, Chinese XR company Xreal believes the industry may finally be turning a corner.
Speaking at Google I/O 2026, Xreal founder and CEO Chi Xu said recent advancements in hardware and software are helping smart glasses become more usable and commercially viable. Xreal, which has partnered with Google on extended reality projects, showcased its latest smart glasses effort, Project Aura, during the event.
“Everybody’s losing money,” Xu admitted while discussing the current state of the smart glasses market. According to him, the challenge has always been combining the right hardware, operating system, and user experience into a device people actually want to wear daily.
The company’s newest device, Aura, attempts to solve some of those long-standing problems. The glasses feature built-in OLED displays that display high-resolution visuals directly inside the lenses. Users can watch videos, browse the web, use immersive navigation tools like Google Maps, and even interact with holographic-style apps using hand tracking.
Aura also supports virtual entertainment experiences, including VR YouTube content and motion-controlled games. One feature even lets users create floating digital artwork with hand gestures.
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However, the device still has a few issues. Instead of operating independently, the glasses remain connected to a small external computing puck that powers the experience. Users are expected to carry the phone-sized accessory in their pocket while using the glasses.
Despite the somewhat clunky setup, Xreal believes the trade-off keeps the device lighter and more comfortable than traditional VR headsets. Xu says the glasses are not just designed for entertainment, but also for productivity. He imagines people using them in cafés, on flights, or while working remotely as portable virtual workspaces.
The Aura glasses are currently available only to developers, but the company plans a commercial launch later this year. Xu also confirmed that Xreal is preparing for an IPO before the end of 2026.
The optimism around smart glasses has grown in recent years, particularly after Meta and Ray-Ban found success with their AI-powered smart glasses partnership. While Meta’s Reality Labs division still loses billions annually, its glasses have attracted mainstream consumer attention in a way previous products failed to do.
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Xreal now hopes the market is mature enough for wider adoption.
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