Look and Nod to Pay... Chinese Tech Giants Clash Over 440,000-Won AI Glasses

Alibaba Unveils N1 AI Glasses with Gaze Tracking
Features Iris-Authenticated Payments and Health Monitoring
Chinese Tech Giants Vie for Market... Meta Dominates Globally

Chinese tech giants are entering the race to launch new products in the AI glasses market, seen as the next device after smartphones.

A visitor tries Alibaba's AI glasses at the World Artificial Intelligence Conference in Shanghai, China, last July. AP-Yonhap News

According to Chinese media outlets including First Financial, Alibaba held a new AI hardware product launch event in Hangzhou, China, on October 13 and unveiled its N1 and N1 Pro AI glasses, as well as AI earbuds. After government subsidies and discounts, the N1 is priced at 2,218 yuan (about 440,000 won), while the N1 Pro costs 2,600 yuan (about 520,000 won).

See, ask, and pay... AI glasses operated with a glance

The key feature of the higher-end N1 Pro is the user's gaze. The glasses recognize what the wearer is looking at and provide related information. For example, if the user looks at a line on a foreign-language menu and asks, "What is this?", the glasses provide an audio translation. Chinese IT news outlet IT House said, "A distinctive feature is that the AI identifies objects the user is looking at and provides relevant information."

Users can also pay with their eyes. After initiating a payment in Alipay, they look at the store's payment QR code and confirm the amount. A nod then completes the payment after iris authentication. The iris authentication technology was developed in collaboration with Ant Group, Alibaba's fintech affiliate. Alibaba said the false recognition rate is less than one in a million. The N1 Pro can also measure heart rate and blood oxygen saturation.

Both models are equipped with 50-megapixel cameras and support 4K video recording. Their batteries are replaceable, and the N1 Pro can be used for up to eight hours. However, neither model has a display that shows information on the lenses.

A representative speaks at Alibaba's Qwen AI Hardware 2026 Product Launch in Hangzhou, China, on the 13th. Photo provided by Alibaba Qwen.

Alibaba's plan is to connect its proprietary AI model, Qwen, with everyday services such as e-commerce and payments. The company is also developing technology that allows AI to suggest services users may need without waiting for instructions. "Qwen's goal is to become everyone's personal agent," said Song Gang, vice president of Alibaba Group's Qwen business unit. "AI wearables are a way for Qwen to extend into the physical world."

AI glasses are attracting attention as a potential new way to use large language models (LLMs) in everyday life. Smartphones require users to tap the screen to operate them, while AI glasses use cameras and microphones to perceive their surroundings on their own.

Other Chinese companies are also competing by emphasizing their respective strengths. Xiaomi has expanded its presence with AI glasses equipped with camera and voice features. Rokid has highlighted real-time translation and on-lens display capabilities. RayNeo Innovation, a TCL subsidiary, is targeting overseas markets with its display technology, while Xreal, whose main products are glasses for video and gaming, is also expanding its overseas sales network.

China's market grew 87% in a year... Meta dominates the global market

China's AI glasses market is growing rapidly. According to market research firm IDC, smart glasses shipments in China totaled 2.46 million units last year, up 87.1% from a year earlier. That was nearly twice the 44.2% increase in global shipments over the same period. Chinese companies accounted for 23.3% of global shipments, and their share reached 87.4% in the narrower category of augmented reality (AR) and extended reality (ER) glasses. IDC said, "Chinese companies are rapidly incorporating optical components and AI technology into products, drawing on the country's electronics supply chain."

However, market growth does not automatically lead to mass adoption. According to IDC, smart glasses shipments in China fell 8% year over year to 611,000 units in the second quarter of this year. The decline was driven by audio glasses, which are primarily used for voice functions and have no camera or display; sales of these products fell 35.4%. The decline is attributed to a lack of differentiated features and slowing demand to replace existing products. By contrast, shipments of AR and ER glasses with enhanced AI features rose 123%.

There are also technical challenges. Manufacturers need to ensure sufficient battery life while keeping cameras and microphones on, and must address issues related to comfort and privacy. Experts say the consumer base will expand only after enough real-world use cases have emerged. An employee at an automobile company in Beijing, China, said, "I use them for real-time translation when meeting foreigners. They are useful in some ways, but the fact is that there are still too many variables for me to use them reliably for official work."

Meanwhile, U.S.-based Meta is far ahead in the global market. According to figures compiled by market research firm Omdia, Meta accounted for 85.2% of global AI glasses shipments last year. Rokid and Xiaomi trailed at 3.9% and 3.5%, respectively.

This content was produced with the assistance of AI translation services.