# Nreal
Nreal (rebranded [XREAL](https://www.edgepedia.org/xreal) in 2023) is a Beijing-based consumer augmented reality company founded in 2017 by Dr. Chi Xu (徐驰) that makes tethered AR glasses driven by a connected smartphone, PC, or console rather than a standalone headset.[1](https://www.xreal.com/about) • [2](https://vrarwiki.com/wiki/Xreal) Its glasses use birdbath optics and plug into a host device over USB-C, an approach that keeps them near the weight of ordinary sunglasses while displaying a 1080p image per eye.[2](https://vrarwiki.com/wiki/Xreal) The company has ranked first globally in AR glasses sales revenue from 2022 to 2025 per iResearch data cited in its Hong Kong IPO prospectus, but it remains loss-making, with about RMB 2 billion in cumulative net losses over 2023-2025 and only RMB 63.63 million in cash at the end of 2025.[3](https://www.tmtpost.com/7946429.html)
| Key fact | Detail |
| --- | --- |
| Founded | 2017, Beijing, by Dr. Chi Xu (co-founder Peng Jin)[1](https://www.xreal.com/about) • [2](https://vrarwiki.com/wiki/Xreal) |
| Product | Tethered consumer AR glasses (birdbath optics, micro-OLED) plus Beam/Beam Pro accessories[2](https://vrarwiki.com/wiki/Xreal) |
| Largest round | $100 million Series C, 23 September 2021, at a $700 million valuation[4](https://www.cnbc.com/2021/09/23/chinese-ar-glasses-firm-nreal-raises-100-million-in-new-funding.html) |
| Funding pace | $200 million raised in the 12 months to March 2022; roughly RMB 2.2 billion cumulative[5](https://techcrunch.com/2022/03/29/nreal-200-million/) • [3](https://www.tmtpost.com/7946429.html) |
| Main investors | Sequoia China, Yunfeng Capital, Shunwei Capital, Hillhouse, CPE, CICC Capital; strategic backers Alibaba, Kuaishou, NIO Capital, iQIYI[5](https://techcrunch.com/2022/03/29/nreal-200-million/) • [3](https://www.tmtpost.com/7946429.html) |
| Shipments | About 130,000 units per year, 2023-2025 (137,200 / 124,900 / 133,700)[3](https://www.tmtpost.com/7946429.html) |
| Finances (2025) | Revenue RMB 516 million; net loss RMB 456 million; gross margin 35.2%[3](https://www.tmtpost.com/7946429.html) |
| Status | Operating; filed for a Hong Kong IPO after reporting a 3-6 month cash runway at end-2025[3](https://www.tmtpost.com/7946429.html) |
## Founding and early products
Chi Xu, a former NVIDIA software engineer who had worked at [Magic Leap](https://www.edgepedia.org/magic-leap), founded the company in Beijing in 2017 with co-founder [Peng Jin](https://www.edgepedia.org/peng-jin).[2](https://vrarwiki.com/wiki/Xreal) The flagship Nreal Light was announced in 2019 and won a CES Best Startup award; per the product record it weighs about 88 g and offers 6DoF tracking through outward-facing cameras.[2](https://vrarwiki.com/wiki/Xreal) In the United States the glasses sold for $600 (listed at $599 via Verizon) and plugged into 5G-compatible Android devices, with retail in South Korea, Japan, and Spain; as of September 2021 the company had not yet launched in China.[4](https://www.cnbc.com/2021/09/23/chinese-ar-glasses-firm-nreal-raises-100-million-in-new-funding.html) • [5](https://techcrunch.com/2022/03/29/nreal-200-million/) Qualcomm supplied Snapdragon processors and worked with Nreal on its developer ecosystem.[6](https://techcrunch.com/2020/09/04/nreal-raises-40-million/)
## Products and birdbath-optics technology
**Tethered by design.** Nreal's glasses contain the display and optics but rely on a connected device for processing and power. This is the defining distinction from standalone headsets such as the [Apple Vision Pro](https://www.edgepedia.org/apple-vision-pro): the glasses stay close to sunglasses size and weight, while the phone (or, later, the company's Beam accessories) supplies the compute.[2](https://vrarwiki.com/wiki/Xreal)
**Birdbath optics.** A small micro-OLED panel sits inside the temple, and its light is bounced off a curved semi-reflective combiner toward the eye, forming a bright virtual image that appears to float a few meters in front of the wearer. This differs from waveguide designs, in which light is piped through a flat lens; birdbath optics deliver brightness and image quality at a tethered, lower-cost form factor.[2](https://vrarwiki.com/wiki/Xreal)
The product line after the rebrand, per the product record:[2](https://vrarwiki.com/wiki/Xreal)
- Xreal Air 2 ($399) and Air 2 Pro ($449), announced 4 September 2023.
- Air 2 Ultra, announced 7 January 2024 at $699, with dual 3D environment sensors, 52° FOV, 120 Hz, and 80 g; shipped March 2024.
- Beam Pro (2024), an [Android 14](https://www.edgepedia.org/android-14) spatial computer accessory from $199.
- Xreal One, announced 4 December 2024 at $499, the first glasses with the company's X1 chip, native 3DoF, 50° FOV, 120 Hz, 84 g.
- One Pro (early 2025), $599, X-Prism optics, 57° FOV, 87 g.
- Project Aura, Android XR glasses co-developed with Google, with an X1S chip and a tethered compute puck, global launch targeted for 2026.
## Funding history by the numbers
- **September 2020:** $40 million round; Qualcomm was supplying silicon and developer-ecosystem support at that time.[6](https://techcrunch.com/2020/09/04/nreal-raises-40-million/)
- **23 September 2021:** $100 million to fund international expansion, at a $700 million valuation.[4](https://www.cnbc.com/2021/09/23/chinese-ar-glasses-firm-nreal-raises-100-million-in-new-funding.html)
- **March 2022:** $60 million Series C extension, bringing funding over the prior 12 months to $200 million.[5](https://techcrunch.com/2022/03/29/nreal-200-million/)
- **Cumulative:** roughly RMB 2.2 billion, per the IPO prospectus, from investors including Alibaba, Kuaishou, NIO Capital, Hillhouse, Shunwei Capital, and iQIYI.[3](https://www.tmtpost.com/7946429.html)
No kept source names the lead investor of the September 2021 round, and no source describes the stakes or board roles of Sequoia China, Hillhouse, CPE, or Yunfeng; the sources are silent on those points.
## Business, sales and market position
Per iResearch data cited in the prospectus, XREAL held a 27.0% global revenue share and 24.8% unit share of AR glasses in 2025, and ranked first by sales revenue from 2022 to 2025.[3](https://www.tmtpost.com/7946429.html) The company's own site cites the same iResearch rankings and a retail presence in over 40 countries and regions.[1](https://www.xreal.com/about)
Shipments have stayed near 130,000 units a year (137,200 in 2023, 124,900 in 2024, 133,700 in 2025), but the mix shifted sharply in 2025: Air-series shipments fell 83% to 17,403 units while One-series shipments grew 724% to 111,355 units.[3](https://www.tmtpost.com/7946429.html) Product lines span price tiers, with average prices of about RMB 1,656 for the entry Air series, RMB 3,196 for the mid-to-high-end One series, and RMB 3,665 for the flagship Light-Ultra-Aura series.[3](https://www.tmtpost.com/7946429.html)
## Legal disputes and the 2023 rebrand
In 2021 [Epic Games](https://www.edgepedia.org/epic-games) sued Nreal, arguing the "Nreal" name was confusingly close to its [Unreal Engine](https://www.edgepedia.org/unreal-engine) trademark. The parties settled out of court in April 2022, and the case was dismissed that August with confidential terms.[2](https://vrarwiki.com/wiki/Xreal) Nreal was also in a legal spat with Magic Leap as of September 2020, while pursuing telecom partnerships similar to Magic Leap's; the kept sources do not record the dispute's outcome or any effect on US sales.[6](https://techcrunch.com/2020/09/04/nreal-raises-40-million/)
On 25 May 2023 the company announced its rebrand to XREAL, saying the disputes over the Nreal mark had been "resolved amicably", and introduced the Xreal Beam accessory.[2](https://vrarwiki.com/wiki/Xreal)
## References
1. [XREAL About Us](https://www.xreal.com/about)
2. [Xreal - VR & AR Wiki](https://vrarwiki.com/wiki/Xreal)
3. [AR眼镜裸泳！XREAL三年巨亏20亿上市续命 (TMTPost)](https://www.tmtpost.com/7946429.html)
4. [Chinese AR glasses firm Nreal raises $100 million in new funding (CNBC)](https://www.cnbc.com/2021/09/23/chinese-ar-glasses-firm-nreal-raises-100-million-in-new-funding.html)
5. [AR glasses maker Nreal nabs $200M funding in 12 months (TechCrunch)](https://techcrunch.com/2022/03/29/nreal-200-million/)
6. [Qualcomm-powered Chinese XR startup Nreal raises $40 million (TechCrunch)](https://techcrunch.com/2020/09/04/nreal-raises-40-million/)
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*Topic: Encyclopedia › Society and history › Economics and business › Business and work › Business and work overview › Companies and corporations › Venture-backed startups and growth companies › Deep-tech, hardware, industrial, climate, and mobility startups*
*Initially written Sep 17, 2026 · Reviewed: Sep 18, 2026 · Edited: Sep 18, 2026; Oct 11, 2026 · Last review: Sep 18, 2026*
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License: Edgepedia Community License 1.0, https://www.edgepedia.org/edgepedia/license