London-based hardware company Nothing is on track to release a pair of smart glasses next year, Bloomberg reported, citing anonymous sources.

The glasses will likely feature cameras, microphones and speakers, and will connect to a smartphone and the cloud to process AI queries, the report said.

CEO and co-founder Carl Pei was initially resistant to the idea of smart glasses, but he has since told employees that he wants to focus on a multi-device strategy, expanding the company’s remit beyond its existing smartphone lines and audio gear, Bloomberg said.

The company is also planning to release a pair of earbuds with AI features this year. Last year, Pei told TechCrunch that it planned to release its first AI device in 2026, though he didn’t specify what kind of device it might be.

If the report is true, Nothing would be going up against the likes of Meta, Even Realities, and Rokid, all of which make smart glasses. Meta has so far launched multiple versions of its smart glasses, and earlier this week showed off two models that support prescription lenses. Apple is rumored to release a pair of smart glasses next year, and Google’s smart glasses with Samsung are rumored to land this year.

Nothing became a unicorn last year after it raised a $200 million Series C round at a $1.3 billion valuation. The company has been popular among tech enthusiasts thanks to its unique design, which often features transparent and see-through elements. However, it still only accounts for a tiny share of the smartphone market, which has long been dominated by incumbents Apple, Samsung, a few Chinese companies and Google itself.

Pei has said multiple times that Nothing would need to innovate on the hardware and software front, and use AI, to stand out in the market. The company last year launched a tool that lets people create mini apps using AI prompts.