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Alibaba Spearheading Funding Effort into AR Glasses Manufacturer Nreal for Metaverse Push

Global level e-commerce giant Alibaba has recently led a funding drive of $60 million into Nreal, the maker of augmented reality (AR) glasses products

According to Nreal, the funding will be utilised in enhancing spending in research and development tasks, so that the brand can push into different marketplaces during 2022, including China.

A number of high profile Chinese origin technology mammoths such as Alibaba and game publisher Tencent are making considerable efforts to get a piece of the metaverse pie. Alibaba’s investment drive into Nreal will help it get access to some advanced augmented reality technology that can boost its own capabilities.

Nreal is known for its AR glasses and offers products that are suitable for the metaverse. The technology it uses is capable of superimposing virtual objects and data onto the real world. Currently, Nreal offers two glasses i.e. the Air and Light models. These let users get access to a selection of augmented reality applications including features such as movies and games whilst in virtual space.

AR technology is seen as a key driver for development of products and services of the metaverse, and there have been many developments in the recent past in this domain. The metaverse complements augmented reality technology because it is fundamentally a collection of online virtual domains that users can work in and enjoy entertaining content. In a way, AR technology is the gateway to metaverse experiences.

The buzz around the metaverse is set to grow fast and augmented reality technology such as those in Nreal’s wearables will contribute significantly to the growth.

Going into the details of the investment round, representatives of Nreal stated that the funds will help the company extend its reach to several new markets during the ongoing year. It is also putting an emphasis on penetrating the Chinese marketplace with its AR tech and hardware offerings. Nreal is not a complete stranger to Asia and it does sell offerings in Japan and South Korea, along with Western countries such as the US and Spain.

Nreal, headquartered in Beijing, has been gaining interest from many notable investors across the world. The company has gained significant funding last September, with a $100 million investment round. It is currently being backed by several parties such as vehicle manufacturer Nio and Sequoia Capital China, a venture capital establishment. Nreal did not reveal the exact figure being invested by Alibaba. According to one report, the AR glasses maker already has a $700 million valuation. Nreal’s investors also include Kuaishou, a video platform company, and streaming service provider iQiyi.

With the latest investment round, Nreal could potentially gear up for a collaboration with Alibaba. There have already been instances of the brand collaborating with investors. This includes last year’s partnership with Nio for designing AR glasses for the latter’s electric vehicles (EV).

What’s interesting is that Alibaba itself has also made an announcement regarding the release of AR glasses geared towards virtual meeting user bases this year.

Further news regarding the potential collaboration is expected in the near future.

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