This company is starting to approach Theranos-levels of hype. Do they really have such amazing tech that they can garner these kinds of valuations? Sure, the demos look amazing but they're a far cry from a production product.
On the other hand, as is mentioned in the article, part of this may be just knowing that the actual engineering and processing power needed to produce a marketable product still costs more than feasible for an actual item that people can afford.
I make lots of analogies between the nascent consumer AR/VR sphere and the smartphone landscape in the early 2000's. I'm sure there were companies capable of building something like an iPhone back in the days of Treos and PocketPCs but just because you can draw it up and design it doesn't change the fact that the actual chips and parts weren't available at costs the market would bear until several years later.
I'm sure Apple had been working on the development which led to the iPhone long before they were able to produce an actual iPhone at consumer prices. This venture could just as easily be similar early development that needs to take place in order to produce an actual product once the needed hardware is available.
