XREAL, a leading Chinese maker of augmented reality (AR)glasses, has opened its global headquarters in Shanghai’s Pudong New Area.

The company announced it will use the Pudong base as an innovation center to promote the integration of artificial intelligence (AI) and AR technology. Xreal said it is committed to making AR glasses a next-generation intelligent terminal for widespread use.

In May, State-owned Pudong Venture Capital Group invested 200 million yuan (US$28.2 million) in Xreal, which influenced the company’s decision to establish its global HQ in the district.

Xreal founder and CEO Xu Chi said at the opening ceremony that the “iPhone moment” for AR glasses — a milestone indicating mass-market adoption — is expected around 2027 or 2028. By that time, smart glasses will be capable of predicting and responding to personal needs.

According to Xu, key factors enabling the AI-AR integration — such as AI’s multimodal understanding, long-term memory, hardware advancements, and agent ecosystems — will mature in the next two to three years, marking the start of a “golden decade” for smart terminals.

Xu’s forecast aligns with Shanghai’s recently announced action plan for the intelligent terminal industry, which aims to grow the sector to over 300 billion yuan by 2027.

The Shanghai government plan also pledges strong support for the smart glasses industry, including promoting various AR, mixed reality, and virtual reality products, fostering globally influential brands, cultivating at least two industry leaders, and building a complete product matrix for consumers and businesses.

Founded in 2017, Xreal has been leading in global consumer AR glasses shipments from 2022 to 2024, according to International Data Corporation. The company’s shipments grew 114% year-on-year in the second quarter, capturing 36% of the market.(SD-Agencies)