Xreal Unveils New AR Glasses with Self-Designed Chip to Compete with Meta and Snap

Xreal, a company backed by Alibaba, launched its latest augmented reality (AR) glasses on Wednesday, aiming to rival competitors like Meta and Snap in the growing AR market.

The new Xreal One Series features the X1 chip, the company’s first self-designed processor. This development marks a significant enhancement in the glasses’ capabilities, eliminating the need for a companion device previously required to connect to phones, laptops, or gaming consoles. With the new chip, users can now see their content on a massive digital screen directly in front of them, without relying on external devices like the previous Beam accessory.

Chi Xu, CEO of Xreal, called the X1 chip “the biggest upgrade in Xreal history and probably the biggest upgrade for the entire consumer AR glasses sector,” adding that the three-year development process was crucial for making the product more competitive. Xu emphasized that the company needed a custom chip to unlock new features and differentiate itself from the competition.

Xreal, one of the leading companies in the AR glasses market, faces tough competition from other tech giants like Snap, which introduced new Spectacles in September, and Meta, which continues to push its Meta Ray-Ban partnership. Additionally, Qualcomm is collaborating with Google and Samsung on their own AR glasses.

Unlike Meta’s headsets, which are large and costly, Xreal is betting on glasses as the future of AR for mass-market adoption. “People have started to realize a headset doesn’t make sense, we need to go to lighter form factors to the glasses category,” said Xu. However, he acknowledged that the challenge is delivering a headset-like experience in a much smaller, more portable form factor.

The Xreal One and Xreal One Pro glasses start at $499 and $599, respectively.

Although AR technology has generated a lot of buzz in recent years, the market has yet to explode. High-cost and uncomfortable large headsets have failed to take off, and companies like Xreal and Meta are focusing on making glasses more compelling. However, the lack of content and clear use cases remains a hurdle for wider adoption. Xu stressed that developing good hardware is essential to attracting developers and creating the ecosystem necessary for AR to thrive.

Looking ahead, Xu projected that Xreal will sell 500,000 units of its previous products by 2025, nearly doubling this year’s sales.