Intel is working on an augmented-reality headset that will use its RealSense 3D technology, the Wall Street Journal reports, citing anonymous sources.
Intel would not confirm the rumor, only saying Intel has a tradition of creating product prototypes.
"We have to build the entire experience ourselves before we can convince the ecosystem," Achin Bhowmik, VP of Intel's perceptual computing group, told the publication.
Intel's RealSense 3D technology uses cameras to measure depth and enable the computer to read facial expressions and gestures and swap out backgrounds.
Specifics of the headset's design weren't shared, but it's likely to overlay objects onto to the real world. It's not clear if the headset will be powered by mobile or PC.
Augmented reality is different than virtual reality, as it is mixed with the live, view of a physical, real-world environment. Google, Facebook, and other technology giants have been working on VR headsets.
Intel is likely building the headset to show off its chips and technology to partner companies. The chip-giant has been working to find other avenues of revenue beside falling PC chip sales.