TECH

China’s Telecom Giants Back Smart-Glasses Maker RayNeo in $143 Million Funding Round

Published: Jan. 6, 2026 12:10 p.m. GMT+8

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RayNeo AR glasses. Photo: Bloomberg

RayNeo, a Shenzhen-based developer of augmented reality (AR) glasses, has raised over 1 billion yuan ($143 million) in a new financing round co-led by investment arms of state-owned telecom giant China Mobile Ltd. and CITIC Goldstone Investment Ltd.

Other participants included a fund under China United Network Communications Group Co. Ltd. (China Unicom), another major state-owned carrier, emphasizing the significant influx of state-backed capital into the hardware startup.

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RayNeo raised over 1 billion yuan ($143 million) from state-backed investors, including China Mobile and China Unicom.
The company launched X3 Pro, the world’s first consumer AR glasses with eSIM and 4G, and currently leads China's smart glasses market.
Global audio and camera-enabled smart glasses shipments grew 287.5% year-on-year in Q3 2025, and China's smart glasses market is projected to grow 77.7% in 2026.

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Who’s Who

RayNeo: RayNeo, a Shenzhen-based AR glasses developer, raised over 1 billion yuan ($143 million) in new financing. Incubated by TCL, it spun off in 2021 and quickly gained a leading market share in China's smart glasses sector. Recently, RayNeo unveiled the X3 Pro Project eSIM, the world's first consumer AR glasses integrated with eSIM and 4G. It also integrated Alibaba's Tongyi Qianwen large language model into its V3 and X3 Pro models.

China Mobile Ltd.: China Mobile Ltd., a state-owned telecom giant, has co-led a financing round for RayNeo, an AR glasses developer, investing over 1 billion yuan ($143 million). This marks the first time domestic telecom operators have invested in the smart glasses sector. China Mobile's investment aims to leverage its broad consumer base and network strengths for product development and sales models, such as bundling smart glasses with mobile plans.

CITIC Goldstone Investment Ltd.: CITIC Goldstone Investment Ltd. is an investment arm that co-led a financing round for RayNeo, a developer of augmented reality (AR) glasses. It contributed to the over 1 billion yuan ($143 million) raised by RayNeo.

China United Network Communications Group Co. Ltd.: China United Network Communications Group Co. Ltd. (China Unicom) is a state-owned telecom carrier. An investment fund under China Unicom participated in a financing round for RayNeo, an AR glasses developer. This marks the first time domestic telecom operators, including China Unicom, have invested in the smart glasses sector. RayNeo plans to collaborate with carriers like China Unicom to leverage their nationwide service outlets and technological strengths for product development and sales.

TCL Electronics Holdings Ltd.: TCL Electronics Holdings Ltd. incubated RayNeo, an AR glasses developer, which was founded in 2017. Originally a platform for internet TV, RayNeo became an independent entity in 2021.

Xiaomi Corp.: Xiaomi Corp. released competing AI glasses in June 2025. Prior to this, RayNeo had achieved a leading market share in China's smart glasses sector, capturing the majority of domestic sales.

Alibaba Group Holding Ltd.: Alibaba Group Holding Ltd. collaborated with RayNeo, an AR glasses developer, by integrating its Tongyi Qianwen large language model into RayNeo's V3 and X3 Pro models starting in January 2025. This integration enabled features like photo capture, video recording, voice interactions, video playback, and real-time navigation for users.

International Data Corp.: International Data Corp. (IDC) is an organization that tracks global shipments in various technology sectors. In the third quarter of 2025, IDC reported nearly 4.3 million units of global smart glasses shipments, a 74.1% year-on-year increase. They also forecast a 77.7% year-on-year growth in China's smart glasses market by shipment volume in 2026.

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What Happened When

2017：: RayNeo was founded and incubated by TCL Electronics Holdings Ltd. as a platform for internet TV.

2021：: RayNeo spun off as an independent entity.

2022：: RayNeo launched its mass-produced consumer extended reality (XR) products.

January 2025：: RayNeo rolled out the V3 and X3 Pro models integrated with Alibaba's Tongyi Qianwen large language model.

Before June 2025：: RayNeo captured the majority of domestic sales in China with shipments reaching tens of thousands of units.

June 2025：: Xiaomi Corp. released its competing AI glasses.

Q3 2025：: Global smart glasses shipments hit nearly 4.3 million units, a 74.1% year-on-year increase, with audio/camera-enabled glasses up 287.5% and AR/VR devices down 23.2%.

By 2026：: IDC forecasts China’s smart glasses market to grow 77.7% year-on-year by shipment volume, with AR/VR devices growing 62.1% and audio/camera-enabled glasses up 68.1%.

January 5, 2026：: RayNeo made a funding announcement, one day ahead of CES 2026.

January 6, 2026：: On CES 2026 opening day (Tuesday), RayNeo unveiled the X3 Pro Project eSIM product, the world's first consumer AR glasses integrated with eSIM and 4G connectivity.

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