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Magic Leap seeks additional funds after big PIF investment

The flagship Magic Leap 2 headset uses in-house technology Matthias Oesterle/Alamy Live News via Reuters
The flagship Magic Leap 2 headset uses in-house technology
  • PIF invested $750m in Magic Leap
  • It creates augmented reality devices
  • Further funding needed

Saudi Arabia’s Public Investment Fund has invested $750 million into technology and software developer Magic Leap since the beginning of 2023, strengthening its role as the majority owner.

This year’s funding of $160 million builds on the sovereign wealth fund’s previous allocation of $590 million in 2023 facilitated through convertible debt arrangements, as detailed in Magic Leap’s UK filings.

Florida-based Magic Leap develops devices, such as lightweight eyepieces and augmented reality headsets, and software for sectors such as healthcare, retail, sports and entertainment in the US.



The company has raised at least $3.5 billion, but said in its UK filings that it needs additional funds later this month and again in January and June 2025 “to meet its obligations as they fall due,” Bloomberg reported.

The filing states that $124.8 million of outstanding convertible debt is due to mature in September.

Magic Leap entered a partnership with Google in May, combining the startup’s expertise in optics and device manufacturing with the search giant’s other technology platforms. 

Despite the new partnership, Magic Leap cut 75 jobs on July 18 to reorient its business toward technology licensing, Bloomberg reported.

PIF meanwhile continues to make substantial investments in the gaming sector. It is the largest outside shareholder of Nintendo with an 8.3 percent share of the Japanese company.

PIF-owned Savvy Games Group expanded its footprint in the industry by acquiring game publisher Scopely for $4.9 billion in April 2023.