Apple is pushing to launch AI-powered smart glasses by the end of 2026, scrapping earlier plans for a camera-equipped Apple Watch. The glasses, internally called N401, will include cameras, microphones, and speakers, enabling tasks like phone calls, music, translation, and navigation through Siri. Apple aims to compete with Meta’s Ray-Bans and Google’s upcoming Android XR glasses.

While Apple had considered adding cameras to Apple Watches and AirPods, only the AirPods project remains active. Meanwhile, OpenAI and former Apple designer Jony Ive are preparing to release AI hardware next year, adding pressure on Apple in the competitive AI space.

Apple is also working on custom chips for its smart glasses, which are expected to outperform Meta’s in design but follow a similar feature set. Meta plans to release high-end glasses with displays this year and true AR glasses by 2027.

Despite lagging behind in AI, Apple is racing to catch up. It plans to allow developers access to its large language models to build smarter apps. At the same time, it’s working on new versions of the Vision Pro headset and preparing a foldable iPhone for release in late 2026.

The Vision Products Group leads much of this development, but Apple faces internal concerns that weaker AI could hurt adoption of its new wearables.