Project Ara is a Google initiative led by Paul Eremenko to develop a modular smartphone platform. The phone consists of an endoskeleton frame and interchangeable modules that can be customized by the user. Modules connect to the frame using new technologies like UniPro and electropermanent magnets. The goal is to make phone hardware upgradable and repairable, allowing users to replace individual components and customize their device as needed. However, some challenges remain around size, weight, and ensuring component compatibility.