X Reality Group secures AUD $2.1m grant to boost AI training
X Reality Group has been awarded a AUD $2.1 million Industry Growth Program grant to advance the artificial intelligence roadmap for its Operator XR training systems.
The grant, provided by the Australian Government, aims to accelerate the integration of advanced AI and cloud services into Operator XR's virtual training solution, which is utilised by law enforcement and defence clients for mission-critical simulations.
According to the company, this funding will support the expansion of manufacturing at its Sydney headquarters, enabling a 100% increase in the production capacity of its training weapons through new additive manufacturing equipment and enhanced electronics design processes. The investment will also contribute to achieving a suite of global security and quality certifications required for large defence and government contracts.
Funding structure
The Industry Growth Program grant, valued at AUD $2.1 million, will be distributed quarterly over a 24-month period beginning 1 August 2025. The funds are allocated toward both current and future personnel, as well as capital equipment, with disbursement matched to eligible expenditures throughout each quarter.
This follows a recent AUD $2 million capital raise for X Reality Group, which was supported by Regal Partners and its Regal Emerging Companies Opportunities Fund.
Strategic focus on AI
This latest development continues X Reality Group's focus on embedding artificial intelligence across its Operator XR platform. This is aimed at delivering training that offers real-time feedback, supports instructors, and can be scaled efficiently, all while helping to reduce costs for clients involved in defence and law enforcement activities.
The company recently appointed Ash Crick to lead the advancement of its AI roadmap, with specific initiatives in adaptive learning, automated scenario creation, and AI-driven decision support for trainees. These features are intended to support personalised training and improve outcomes for clients.
Leadership commentary
Operator XR has seen extraordinary growth over the last 3 years which shows no signs of slowing down. The IGP grant will allow XRG to fast track Operator XR's AI roadmap, which will further position Operator XR the market leader in tactical simulation, increasing both the training ROI for customers and the Company's growth.
This statement was made by Wayne Jones, Chief Executive Officer of X Reality Group.
Operator XR system
Operator XR, a wholly-owned subsidiary of X Reality Group, is focused on extended reality training solutions designed for law enforcement and military agencies. It provides a fully integrated mission planning and rehearsal platform intended to enhance user decision-making, stress management, and tactical responses under pressure.
The Industry Growth Program grant will enhance Operator XR's capacity to provide personalised learning experiences and cloud-enabled feedback, supporting its goal to meet the requirements for larger-scale military and government contracts both in Australia and abroad.
Continuing product development
X Reality Group's ongoing investment in AI and manufacturing capability is positioned to support product differentiation for Operator XR, with the aim of bolstering its presence in the global market for simulation-based training tools.
The company's Sydney-based manufacturing site will see upgrades that are expected to double its output, as new equipment and processes come online. This, combined with further advancements in AI-powered scenario development, is intended to provide clients in the military and policing sectors with a cost-effective and high-value training option.
