Smart glasses maker Xreal Inc. recently raised $100 million, its chief executive officer said, adding to the firm’s coffers as competition in the category heats up.

In an interview with Bloomberg Television, co-founder and CEO Chi Xu said the funding came from “supply chain partners” and other backers who he declined to disclose.

The startup, which has an overall valuation above $1 billion, announced two new sets of glasses at the CES trade show in Las Vegas this week, including an upgraded entry-level pair, and said it has extended a partnership with Alphabet Inc.’s Google.

The Chinese company and US search giant have been collaborating on a pair of smart glasses running Google’s Android XR platform that they plan to launch sometime in 2026. The project is proceeding on schedule, Xu said in the interview.

“We’re really good at building optical modules and building chips. Google, they’re really good at building AI and operating systems,” Xu said, adding that he believes the best glasses hardware will result from collaboration — not one company trying to do everything.

At CES, a range of companies have showcased new wearables and AI-powered gadgets. Razer Inc. debuted concept headphones expected to launch this year, which feature built-in cameras for analyzing a user’s surroundings. Lenovo Group Ltd.’s Motorola unit showed off a concept that took the form of a pendant necklace, also with a camera.

Razer CEO Min-Liang Tan made the case in an interview with Bloomberg earlier this week that some consumers will prefer the headphone style since not everyone wears glasses — and their natural position when worn on the head still allows the cameras to maintain an eye-level perspective.

“I just met him a couple days ago, and we talked a little about that,” Xu said of Tan, adding that he’s confident glasses are the best solution. 

Xreal has faced mounting competition from tech giants including Meta Platforms Inc., which has led the category with its artificial intelligence-enabled Ray-Bans. Meta released a premium $799 model last year with a built-in display and unique wrist-worn band as it explores what features will resonate with consumers.

“This is a big enough market, and I don’t really see the form factor converging,” Xu said, describing the smart glasses category as “an open race for everybody.”

Apple Inc. is expected to introduce its first smart glasses as early as this year after struggling to find momentum with the $3,499 Vision Pro headset, which received a minor update last fall. The company shelved an overhaul of the mixed-reality headset to prioritize AI glasses like those from Meta, Bloomberg has reported.

“The challenge is it is too expensive. It is too heavy,” Xu said of the Vision Pro. “We can deliver 80% of that kind of experience” in a lighter, far more affordable product, he added.