The landscape of tech innovation is continuously evolving, and as we approach the year 2025, a gripping competition known as the "Hundred Glasses Battle" is on the horizon in the realm of Artificial Intelligence (AI) glassesFollowing in Meta's footsteps, companies across China are poised to release AI sunglasses with starting prices around one thousand yuan by the end of 2024, igniting a fervor within the A-share market.

This potential boom is largely driven by the expectations placed on AI glasses as vital applications of AI large modelsSeveral tech giants, such as Meta and Google, who have invested years developing their own AI technologies, are entering the hardware marketMeanwhile, numerous start-ups and supply chain companies are also seeking to capitalize on the burgeoning demand for such devices.

The core challenge lies in how to effectively integrate the capabilities of large AI models with glasses, ensuring that they provide tangible benefits in specific scenarios

This fusion not only requires robust hardware innovations but also a deep understanding of user needs and market dynamics.

AI glasses have begun to garner attention on the A-share market, particularly notable was the rise in shares for the optical retailer DrGlass, which traded between 11 to 20 yuan per share before August 2024. Following the announcements of various AI glasses later in the year, the company saw its share price steadily climb, reaching 50.3 yuan by January 2, 2025. Concurrently, businesses involved in the supply chain—covering displays, cameras, and manufacturing—also experienced significant stock increases of over 10% during the last quarter of 2024.

This sudden interest in traditional optical retailers is largely attributed to the belief of many AI glasses manufacturers that initial markets will focus on replacing conventional eyewear and sunglasses

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With continuous developments in AI functionality, there's optimism for these products to expand their market penetrationBrick-and-mortar optical shops stand out as critical channels for distributing prescription AI glasses to nearsighted consumers.

A key question emerges regarding the potential relationship between AI glasses and smartphones—will the former usher in a new era of mobile technology? As competition heats up, companies are defining their positions and identifying competitive advantages in a rapidly changing market.

Come December 2024, two commendable entries in the AI glasses arena have captured public attention: Shanjijia's AI "Paipaijing" A1 and KANAAN-K1, a smart near-sighted eyewear offered by Jianan Technology.

According to Zhang Bo, CEO of Shanjijia, development of the A1 began in 2023 and represents two years of strategic planning"Eyewear has existed for 700 years and is in close proximity to human perceptions

It has the potential to feed AI the most crucial sensory data by being able to see and hear what a person doesThis makes glasses the most applicable wearable device for AI," he remarkedThe company's focus is not on making an all-knowing assistant but rather on enhancing memory, proposing that AI glasses act as an external brain to assist with understanding, storage, and recall.

Rather than attempting to replace smartphones, Shanjijia envisions its AI glasses as revolutionary companions to themZhang stated, "We believe that smartphones will remain the most powerful intelligent terminals for a long timeOur aim is for AI glasses to serve as the strongest supplement to the smartphone experience." This suggests the glasses would not require separate devices to display information—they plan to operate seamlessly alongside existing smartphone functionalities, potentially becoming what consumers think of as a "second smartphone" within the next few years.

Other domestic companies, including Yidao Information, Looktech, Rokid, and Yingmu Technology, have also begun unveiling AI glasses solutions, although their official market entries are scheduled for the first half of 2025, with price tags ranging significantly, even reaching up to five thousand yuan.

Zhang further revealed an ambitious target for Shanjijia: to ship 500,000 units and achieve over 600 million yuan in annual sales—a figure sufficient to cover operational costs.

In previous years, smartphone manufacturers had already dabbled in Mixed Reality (MR) explorations, albeit with varied success due to complex functionalities and challenges balancing commercial viability with pricing

However, bolstered by Meta's prior successes, firms see opportunities for simpler product definitions.

Recently, Vivo announced that its MR products would launch between September and October 2025, granting users the chance to test experiences in stores across multiple cities in the countryVivo's Vice President Hu Boxuan emphasized that their MR team consists of nearly five hundred experts, indicating a strong investment in commercializing this technology across suitable ecosystems, particularly within gaming and entertainment.

While many current AI glasses lack display functionalities, they primarily rely on voice interactions to execute tasks, such as photo capturing, translation, and music playbackThis approach seems to align with Vivo's direction for MR products.

Reflecting on the industry's direction, Zhang articulated the belief that AI won't venture into glass displays until a user interface (UI) overhaul is achieved—a scenario where current display dynamics, which rely on keyboards, mice, and touchscreens, become obsolete

"Our first-generation products aim to perfect voice UI—positioning glasses as tools for productivity rather than entertainment," he explained.

Industry analyses indicate AI glasses integrate audio and camera capabilities, utilizing advanced AI frameworks to harmonize functionality and aestheticsThe elimination of traditional display and optical components reduces weight, making these devices virtually indistinguishable from conventional glasses while meeting consumer demands for both comfort and style.

Experts concur that the trajectory for AI glasses is likely headed toward Augmented Reality (AR) or Mixed Reality (MR) segments, provided market education improves, supply chains stabilize, and content ecosystems flourish.

To fast-track the launch of new categories, it's essential to reduce hardware costs through increased shipping volumes while simultaneously adapting applications to discover potential 'killer' features

The emergence of AI large models presents a timely opportunity for the MR glasses sector, which has been seeking robust entry points for application.

Focusing on the practical applications of AI glasses, the potential for widespread adoption hinges on utility and accessibilityZhang emphasized that if consumers buy a product and fail to consistently use it, that product will inevitably struggle in the market"We begin by targeting current eyeglass usersThe requirement to wear glasses ensures our product maintains user engagement—specifically through our 'AI Memory' feature," he added, which he believes is crucial for nurturing habitual usage and generating lasting value.

In the global tech scene, major players like Google and Meta have their own proprietary models, while many Chinese startups are opting for platforms compatible with various modelsZhang explained that Shanjijia is engaging in long-term planning to connect with esteemed AI model providers, allowing the integration of multiple interfaces to identify and utilize the most fitting model for their needs.

Moreover, in November 2024, Shanjijia announced its completion of a multimillion-dollar financing round, which included notable investments from edge AI companies, bolstering their collaboration potential in the realm of AI capabilities.

Utilizing different models can optimize strengths, as Zhang noted: "For complex reasoning issues, OpenAI’s robust model may be ideal despite its costs, whereas less challenging tasks could employ alternative, more economical models."

As they pursue user-centric approaches, establishing a balance between rapid deployment of large models and effectively addressing user requirements remains a priority

Analysts project a pivotal shift from AI glasses to AR functionality, contingent upon mature hardware technologies and a deeper recognition of user needs.

Industry insiders predict a wave of new smart glasses will be unleashed from late this year into next, attracting a diverse range of market players, broadening available choices for brands, products, and pricesSignificant improvements are still required in AI multi-modal interactions, photo quality, and battery life to sustain robust market growthAccording to IDC China's research director, Pan Xuefei, this evolution indicates a promising future for AI-enabled smart glasses.

Finally, Zhongtai Securities forecasts a progressive expansion in the global smart glasses market from 2018 to 2021, with continuous acceleration expected from 2024 to 2028, driven by the proliferation of consumer-use casesThe current development phase in the AI smart glasses arena draws parallels to the smartwatch landscape seen around 2014, hinting at high growth potential moving forward.