Xreal's Project Aura Targets Commercial Launch as Google Partner Eyes IPO and Break-Even

Xreal, the smart glasses company that has partnered with Google on its XR hardware ambitions, unveiled Project Aura at Google's I/O conference in Mountain View last week — a wired headset the company hopes will mark a turning point for an industry that has long struggled to deliver on its promise.

Chi Xu, Xreal's founder and CEO, was candid about the sector's financial record. "Everybody's losing money," Xu told reporters at the event. "That's because it's very hard, what we're doing."

Project Aura pairs OLED-display-embedded glasses with a "puck" — a compact, phone-shaped computing module designed to be carried in a pocket. The setup powers a range of experiences, including an immersive Google Maps application, VR YouTube videos, hand-tracked games, basic web browsing, and a painting application that allows users to create holographic imagery visible only to them.

The glasses are currently limited to developers. A commercial release is planned for later in 2026.

Xu described the device as suitable for both consumers and 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," he said.

In Xreal's view, the industry may be approaching a turning point. The 2023 Ray-Ban collaboration between Meta and EssilorLuxottica helped demonstrate that smart glasses can move meaningful volume — though Meta's Reality Labs division, which oversees that product line, continues to operate at a loss.

For Xreal, the path toward viability involves tightening its cost structure. Xu said the company has been improving its gross margin while reducing sales and marketing expenses. "Next year is the year when we could actually break even," he said.

The company is also pursuing a public listing. An IPO is expected before the end of 2026, though Xu declined to provide further details on timing or structure.

Xu framed the current moment as one defined by convergence — hardware maturity, software readiness, and interface design arriving together for the first time. "You need all the key pieces ready — you need the hardware ready, the operating system needs to be ready, and then you need a great user interface," he said.

The broader smart glasses market has seen renewed competition as form factors shrink and AI-powered software capabilities expand. Xreal's Project Aura enters a landscape where established consumer electronics players and well-funded startups are each racing to define what extended-reality wearables look like at scale.

For now, Xreal's commercial timeline, IPO plans, and break-even target in 2027 will be the clearest indicators of whether the company can translate its Google partnership and hardware progress into a sustainable business.

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