Xreality Group Expands Global Footprint with Major U.S. Law Enforcement Deal and Australian AI Grant

Key Highlights:

• XRG secures a $5.7 million contract with Texas Department of Public Safety for Operator XR systems.
• Awarded a $2.1 million grant under Australia’s Industry Growth Program to advance AI capabilities.
• CEO Wayne Jones says the moves “reinforce our U.S. growth strategy” and solidify Operator XR’s market leadership.
• XRG shares surge 35.5% to $0.042 on strong investor response.
  
   

Xreality Group Ltd (ASX: XRG) has delivered a double win that significantly strengthens its positioning in both domestic and international law enforcement and defence training markets. The company, through its U.S. subsidiary Operator XR LLC, has secured a landmark $5.7 million contract with the Texas Department of Public Safety (Texas DPS) — marking the company’s largest ever order for its Operator XR systems.

The same day, XRG also announced a $2.1 million grant under the Australian Government’s Industry Growth Program to fast-track its AI roadmap for Operator XR. The funding aims to scale manufacturing, embed real-time AI into training programs, and pursue global security certifications — further sharpening the competitive edge of XRG’s flagship platform.

Biggest U.S. Win Yet: Texas DPS Taps Operator XR

The Texas DPS deal includes an initial $4.3 million order for VR training systems, software licenses, and two years of support services, with an additional $1.4 million optional component to extend support for years 3 to 5.

“We’re proud to partner with the Texas Department of Public Safety, one of the largest and most respected law-enforcement agencies in the United States,” said XRG CEO Wayne Jones.

“Their selection of Operator XR underscores the readiness of our platform for statewide deployment and reinforces our U.S. growth strategy.”

Texas DPS, responsible for policing over 30 million residents, will use Operator XR’s OP-2 VR training systems to train officers in high-stress tactical scenarios. Delivery is scheduled throughout Q2 FY26, with 30-day payment terms post-receipt.

Importantly, the Texas DPS serves as a high-credibility reference client that may open doors to the 30+ DPS agencies across the U.S., reinforcing XRG’s momentum in North America.

AI Acceleration: $2.1M Grant to Power Operator XR Innovation

In parallel, the $2.1 million grant from the Australian Government’s Industry Growth Program will be disbursed over 24 months starting August 1, 2025, and will support:

• Integration of advanced AI and cloud services, allowing real-time feedback and scalable training.
• 100% increase in training weapon manufacturing capacity at XRG’s Sydney HQ.
• Achieving key global security and quality certifications to unlock further defence and government opportunities.
  
   

The grant aligns with XRG’s appointment of Ash Crick earlier this year to lead the AI roadmap, focusing on adaptive learning, automated scenario creation, and AI-powered decision support.

“The IGP grant will allow XRG to fast-track Operator XR’s AI roadmap, which will further position Operator XR as the market leader in tactical simulation,” said Jones.

Operator XR: Building Global Momentum

XRG’s Operator XR platform provides a fully immersive VR tactical training system designed for law enforcement and military applications. The system allows agencies to enhance decision-making, de-escalation techniques, and crisis response.

Backed by a growing suite of hardware and software, the platform has shown strong uptake in both U.S. and Australian markets — bolstered by its ability to offer portable, secure, and scalable mission rehearsal systems.

With today’s twin announcements, XRG has underlined its core strength: developing high-impact immersive training technologies for mission-critical public safety sectors.

Investor Reaction & Market Outlook

The market has responded with enthusiasm. As of 11:54am AEST, XRG shares were up 35.48%, trading at $0.042, reflecting strong investor confidence in the company’s strategic execution.

With two major updates — one signaling near-term revenue growth via the Texas deal, and the other promising long-term product innovation and market expansion through AI — XRG appears to be delivering on both fronts.

The combination of credible global partnerships, scalable technology, and government backing positions XRG as one of the most compelling small-cap tech plays on the ASX right now.