The launch of GravityXR's 'Jizhi' chip by a former Apple engineer marks a turning point in the XR market, as Chinese startups move from manufacturing partners to direct innovators.
The intensifying battle for dominance in the spatial computing arena shifted gears this week, moving from a competition of hardware assembly to one of fundamental silicon innovation. GravityXR, a Chinese startup founded by former Apple engineer Wang Chaohao, has unveiled the "Jizhi" chip-China's first all-in-one mixed reality (MR) processor designed explicitly to rival the performance of Apple's Vision Pro. This development, reported by the South China Morning Post, signals a critical maturation in the Chinese technology sector: the transition from manufacturing the world's best headsets to designing the brains behind them.
The announcement comes amidst a flurry of activity in the Chinese XR (Extended Reality) market, where domestic giants like Vivo and agile startups like Xreal are aggressively maneuvering to capture market share from Western incumbents. While Apple has long relied on Chinese supply chains to build its devices, the emergence of high-end, home-grown silicon suggests that the knowledge transfer between Silicon Valley and Shenzhen is accelerating, creating a fragmented yet fiercely competitive global landscape.
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According to reports from December 2025, GravityXR's showcase of the Jizhi chip is a direct challenge to the proprietary silicon that gives Apple its edge. Wang Chaohao, leveraging his experience within Apple's engineering ecosystem, has positioned the chip to power high-fidelity AI glasses and XR headsets. This move addresses a critical gap in the Chinese market: while companies like Luxshare have mastered the assembly of complex devices like the Vision Pro, domestic brands have often relied on general-purpose chips from U.S. suppliers like Qualcomm.
The strategic implication is profound. If GravityXR can deliver on its performance promises, it offers Chinese headset manufacturers a domestic alternative to Western silicon, potentially lowering costs and insulating the sector from future geopolitical trade restrictions.
GravityXR is not operating in a vacuum. The Chinese market is currently witnessing a surge of hardware releases aiming to undercut Apple's premium pricing while mimicking its "spatial computing" functionality.
Vivo, a top-tier smartphone competitor to Apple in China, has recently showcased its "Vivo Vision" headset. According to Y.M. Cinema and Patently Apple, this device features dual micro OLED displays, precise eye tracking, and a focus on lightweight design by utilizing an external power pack. While currently reliant on Snapdragon XR-class chipsets, Vivo's entry represents a significant threat due to its massive existing user base and retail footprint in Asia. The prototype was reportedly highlighted at the Boao Forum, signaling high-level corporate backing.
On the other end of the spectrum, established AR startups are doubling down on affordability. Xreal (formerly Nreal) has raised over $60 million from investors including Alibaba to fuel its expansion. CEO Chi Xu has been vocal about his strategy, stating to Bloomberg that Xreal's glasses aim to "blow Apple's Vision Pro out of the water" specifically on the value proposition. By targeting the consumer market that is priced out of Apple's $3,500 ecosystem, Xreal is betting on volume over margin.
"Apple's Vision Pro headset is set to unleash the potential of similar products and benefit smaller players in the industry," noted the founder of a Chinese XR startup in a report by the South China Morning Post, highlighting the 'halo effect' Apple brings to the entire sector.
While Chinese companies are striving for independence, Apple remains deeply entangled with Chinese manufacturing. Reports indicate that Apple is heavily dependent on China to build the Vision Pro, with the bill of materials revealing a complex web of local suppliers. Luxshare, the Chinese contract manufacturer, is the primary assembler of the device.
This interdependence creates a complex political dynamic. Apple CEO Tim Cook has actively courted the Chinese market, confirming the headset's launch in the region and engaging with local tech giant Tencent for content and marketing support. However, production cuts reported by the Financial Times-with Luxshare preparing to make fewer than 400,000 units in the initial year-reveal the difficulties of manufacturing such advanced hardware at scale, even within China's mature industrial ecosystem.
The entry of ex-Apple engineering talent into the Chinese startup ecosystem marks a pivotal shift in the global technology balance. Historically, Chinese firms were viewed as fast followers; today, armed with talent like Wang Chaohao and significant venture capital, they are attempting to leapfrog the development cycle.
For the global market, this fragmentation is likely to accelerate the democratization of spatial computing. While Apple insists on the term "spatial computing" to differentiate itself from the "metaverse," competitors are less concerned with semantics and more focused on form factor and price. As Xu Chi of Xreal noted to China Daily, the sector is waiting for its "iPhone moment." Apple may have provided the spark, but the fuel for the fire might come from the myriad of competitors now racing to build a more accessible version of that vision.
Looking ahead, the success of GravityXR's Jizhi chip will be a bellwether for China's semiconductor ambitions in consumer electronics. If successful, we can expect a new wave of "Powered by Jizhi" headsets that offer 80% of the Vision Pro's capability at 30% of the price. For Apple, the challenge will be maintaining its premium allure in a market that is rapidly flooding with "good enough" alternatives built by the very engineers who helped design the original standard.
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