Samsung is partnering with Google (GOOGL.US) to develop AR glasses, positioning itself as a competitor to Apple and Meta in the AR market.

Intelligence Finance learned that Samsung Electronics' mobile business executives said the company is expected to work with Google, a subsidiary of Alphabet (GOOGL.US), to enter the augmented reality (AR) glasses market. TM Roh, president of Samsung's mobile experience division, said in an interview that the two companies had just announced their cooperation on Project Moohan headsets in December last year, and now they are working together to develop AR glasses. Roh did not provide more details about the glasses, but said they would eventually be launched as part of the company's jointly developed Android XR operating system. As for when to enter the market, Roh said the two companies "will work hard to reach the quality and readiness we want as soon as possible."

Developing true AR glasses, which have long been a staple of science fiction, has been a difficult goal for the tech industry. Google, Apple (AAPL.US) and Meta (META.US) are all seeking to create lightweight glasses that can overlay data and graphics onto the real world, but cost and engineering challenges have slowed progress.

As the largest company in South Korea and one of the world's most prolific smartphone manufacturers, Samsung is looking for new growth engines for its consumer business. The company last year launched the Galaxy Ring, expanding its range of wearable and health-related electronics that can track users' sleep, stress and activity levels. Android XR, developed by Samsung and Google as a "team," aims to provide a unified operating system for all types of wearable headsets.

The AR glasses the two companies are launching will compete with Meta's upcoming product, and may also compete with Apple, which is more cautious about its plans. Meta is planning to launch its AR glasses, called Artemis, in 2027, according to media reports on Tuesday.

Meanwhile, Project Moohan is a mixed reality device that combines AR and virtual reality (VR). It uses outward-facing cameras to simulate AR effects, but it is mainly a fully immersive VR device. Roh said Samsung is still trying to determine the release date and price of the headset, which is expected to be released this year, but the price will not be completely determined by manufacturing costs.

Roh said a key part of launching the headset would be to provide enough content for the device, and added that Samsung and Google are working with third parties to develop custom-made original content. For example, the $3,500 Apple Vision Pro has been struggling to launch enough apps and entertainment features to make it a must-have product.