Xreal CEO Says Firm Has 'Mastered' the Smart Glasses Market with Google-Backed Project Aura

Xreal Steps Into the Spotlight at Google I/O 2026

Xreal, the Chinese augmented reality startup, took centre stage at Google I/O 2026, held 19-20 May in Mountain View, California, where attendees got their first hands-on experience with Project Aura. Xreal describes the device as its first optical see-through XR headset built specifically for Android XR, and it marks the deepest collaboration yet between Xreal and Google on AI-powered eyewear.

CEO Chi Xu told reporters he believes the company has finally cracked what has long been considered one of technology's most unforgiving product categories. "We've mastered it," is the message Xu carried out of the conference, even while acknowledging the sector's persistent profitability problems.

What Project Aura Can Do

Demonstrations at the event included immersive Google Maps navigation, 180- and 360-degree YouTube VR content, and a WebXR painting application created with Gemini. The glasses feature a 70-degree field of view and Xreal's own X1S chip built directly into the frame. Heavy lifting is handled by a Qualcomm Snapdragon XR2+ Gen 2 processor housed in a separate tethered puck that doubles as the battery. The device supports six-degrees-of-freedom tracking along with hand and eye tracking.

Xreal and Google also announced the Android XR Developer Catalyst Programme, which will distribute developer kits globally in the coming weeks, signalling a serious push to build out an app ecosystem before the consumer launch.

A Crowded and Accelerating Race

Project Aura arrives amid an intensifying contest in the smart glasses market. At the same event, Google announced partnerships with Warby Parker and Gentle Monster for audio-only smart glasses shipping this autumn. Apple is reportedly testing four designs for its own smart glasses planned for 2027, while Meta Platforms has already found early commercial success with its Ray-Ban Meta glasses.

Google first revealed its deepened partnership with Xreal in January, describing it as a multiyear extension that positions Xreal as a lead hardware partner for the Android XR ecosystem. Around the same time, Xreal raised $100 million in funding.

An Industry Still Searching for Profit

Despite the confidence on stage, the smart glasses sector has been broadly unprofitable, a reality Xu has openly acknowledged. Xreal's strategy has centred on concentrating resources to build a mass-market hit in the AR glasses category before expanding into AI-only glasses and standalone XR headsets. Project Aura is set to launch globally later in 2026, though neither Xreal nor Google has announced a specific date or price.