Summary of Key Points
The AI glasses market has suddenly become very popular! Four leading companies (XREAL, Rokid, Leino Innovation, and INMO, often referred to as the "AR Four Dragons") are all rushing to go public this year: XREAL has submitted its application to the Hong Kong Stock Exchange, Rokid has completed its restructuring preparations for listing, Leino Innovation is looking for an IR director with experience in going public, and INMO plans to list within three years. Behind this surge is the explosive growth of the market (global shipments are expected to reach 8.7 million units by 2025, a year-on-year increase of 322%). However, none of these companies have yet turned a profit (XREAL has lost 2 billion yuan in three years, and Rokid has spent 3.5 billion yuan in the same period). They are all eager to go public before giants like Apple and Samsung enter the market, in order to secure funds and gain credibility in the secondary markets—after all, the first to list will have a better chance of surviving the next round of competition.
Why the Sudden Rush to Go Public?
The simultaneous pursuit of public listings by these four companies is not coincidental but rather a result of several factors:
1. Market Explosive Growth: Global AI glasses sales are expected to reach 8.7 million units in 2025, and China Merchants Securities believes 2026 will be the "iPhone moment" for this industry, with a market worth hundreds of billions of yuan on the horizon. Investors don't want to miss out on this opportunity and are pushing companies to go public to realize their potential.
2. Pressure from Giants: Companies like Meta and Ray-Ban sold 7 million AI glasses last year, and Apple is set to release its Apple Glasses by the end of this year, with Samsung also launching the Galaxy Glasses in July. With these giants entering the market, startups struggle to compete on supply chains, brands, and funding, so they must go public first to secure a foothold.
3. Support from Policies and Supply Chains: AI glasses were included in national purchasing subsidies last year (alongside smartphones and tablets), making them more affordable for consumers. Advances in chip and display technology have reduced costs, making products more accessible.
4. Financial Strains: Companies are running out of cash. XREAL only has just over 60 million yuan in cash on hand and 3 billion yuan in current liabilities; Rokid has spent 3.5 billion yuan without making a profit. Going public is the fastest way to secure significant funding, otherwise, they may not survive the next round.
What Are Each Company's Advantages?
Each company has its own strengths in technology, market position, and development stage:
- XREAL (first to submit application): A global leader with 71% of its revenue coming from overseas markets and four consecutive years as the top seller of AR glasses. It follows a "detachable" approach (glasses can be used with phones/computers) and has a prestigious list of investors, including Alibaba, Kuaishou, Sequoia, and Hillhouse Capital, but it has lost 2 billion yuan in three years and is struggling financially.
- Rokid (oldest company): The leader in the Chinese market with its own YodaOS-XR operating system and over 260 patents. It offers a "full-function" approach and has attracted investment from six companies in the supply chain, including Kangnai Optics and Haopeng Technology, which boosts its credibility for listing.
- Leino Innovation (incubated by TCL): Known for its advanced technology; it is the only company to mass-produce dual-eye, full-color MicroLED AR glasses. Its investors include China Mobile and China Unicom, indicating its plans for a public offering.
- INMO (lightweight approach): Focusing on "all-in-one" glasses that can be used independently as a terminal for entertainment, office, and sports purposes. It has raised nearly 500 million yuan in three rounds of financing this year, with support from local government funds such as Chengdu Science and Technology Investment and Nanshan New Technology Investment, and is valued at 2 billion yuan.
The timeline for going public is clear: XREAL has submitted its application, Rokid is restructuring, Leino Innovation is preparing, and INMO is raising funds.
Who Is Investing in Them?
The list of investors reflects the diversity of China's tech investment community:
1. Industry Investors: XREAL has Alibaba (content) and Luxshare Precision (supply chain); Rokid has Kangnai Optics and Haopeng Technology; Leino Innovation has China Mobile; INMO has local industrial funds. These investors aim to build ecosystems around AI glasses, such as using them as an entry point for 5G services.
2. Government Support: XREAL has support from Chinese internet investment funds, Rokid from the Hefei municipal government, Leino Innovation from China Mobile Chain Fund, and INMO from Chengdu Science and Technology Investment. Local governments are keen to capture the opportunity in the "next generation of smart devices," just as they did with semiconductors and AI chips.
3. Venture Capital: Sequoia has invested in XREAL, and IDG has invested in Rokid, but no single VC has invested in all four companies, indicating uncertainty about which ones will succeed.
The influx of capital into this loss-making market suggests that investors believe the turning point is near—AI glasses are about to move from a niche hobby item to a mainstream consumer product.
Will Going Public Solve Their Problems?
Going public will help companies secure funds, but their core issues remain unresolved:
1. Profitability: None of the companies have achieved profitability on a large scale; XREAL has lost 2 billion yuan in three years.
2. Competition from Giants: With giants like Apple entering the market, startups may struggle to compete despite going public.
3. Market Demand: Currently, AI glasses are mainly purchased by enthusiasts and early adopters. Whether they can become a necessity like smartphones is uncertain; without consumer acceptance, large-scale financing won't be enough.
The title of "first AI glasses company to go public" brings fame, but whether they can maintain that status depends on their ability to sell products successfully and generate profits.
The Future of the Market: An "iPhone Moment" or a Bubble?
China Merchants Securities' prediction that 2026 will be the "AI glasses iPhone moment" makes sense—just as the iPhone launched the smartphone era, these glasses could herald a new era of AI-powered devices. However, there are risks:
- Opportunities: Policy subsidies and cost reductions, along with the entry of giants, could drive market growth.
- Risks: If product quality (weight, battery life, content) does not meet consumer expectations, the market may become a bubble.
For startups, going public is both a lifeline and an accelerator—funding allows them to continue competing. However, whether they can outperform giants depends on the quality of their products.
In summary, the AI glasses market is exciting but also fraught with uncertainty. While everyone sees its potential, only those who can secure funding, deliver high-quality products, and retain users will succeed in this competitive landscape.