XREAL, a leading AR glasses manufacturer based in Beijing, has successfully raised $100 million in its latest funding round.
Breaking News
The announcement was made by Xreal co-founder and CEO Chi Xu during an interview on Bloomberg Television. Xu mentioned that the funding came from “supply chain partners” and other investors, whose names were not disclosed.
According to data from Crunchbase, Xreal has raised a total of $433 million in external funding since its establishment in 2017.
In its most recent funding round in May 2025, Xreal secured ¥200 million RMB (~$28.6 million USD), led by Pudong Venture Capital, resulting in the company being valued at $1 billion.
Xreal recently introduced the ROG XREAL R1, a pair of 240Hz “gaming glasses” developed in collaboration with Asus Republic of Gamers. Additionally, Google has extended its partnership with Xreal, positioning the company as a key hardware partner for the Android XR ecosystem.
Xu confirmed to Bloomberg Television that the Project Aura, the current Android XR glasses, is on track for release later this year.
Personal Impression
My perspective on Xreal’s AR glasses has been somewhat reserved, particularly regarding the optical technology utilized in all their AR products. I envision AR glasses of the future as seamlessly blending in with regular eyewear. Xreal’s technological approach seems like a unique tangent that doesn’t necessarily address the core issue.
However, Xreal’s birdbath and newer flat prism optics, as showcased on the XREAL One Pro and elaborated by Karl Guttag, offer impressive clarity, decent brightness, and a wider field of view compared to most waveguide optics. Moreover, these optics are available at a significantly lower cost than waveguides with similar specifications, enabling the company to introduce AR consumer glasses at an early stage.
Despite these advancements, the bulkiness of the birdbath and flat prism optics results in a less sleek design. Marketing materials typically avoid showcasing the side profile of the glasses on an individual, as they protrude slightly further from the face than standard eyewear.
Furthermore, both optical technologies involve thick beam splitters and mirrors positioned in front of the eyes, leading to noticeable light loss from the display and ambient light sources. This results in dimmer visuals than expected and a darker overall environment. While I reserve judgment until the release of Project Aura, I am skeptical about its suitability as a comfortable all-day AR glasses solution due to these factors.
As Xreal represents the present state of AR technology, it will be intriguing to observe how the company transitions towards the future of AR. Competing hardware manufacturers are anticipated to enter the market with sleek, stylish, and feature-packed AR glasses aiming to replace conventional smartphones, setting the stage for an exciting evolution in the AR industry.
