Project Ara is Google's initiative to create a modular smartphone platform, allowing users to customize their devices with interchangeable components. The project aims to democratize hardware similar to how Android has done for software, enabling developers to create modules like displays and cameras using an open-source developer kit. The first model, priced around $50, is set to launch in January 2015, offering advantages such as cheaper repairs and customizable features, though it may be larger and heavier than standard smartphones.