Just a week after rumors surfaced of a massive new investment in Magic Leap led by Saudi Arabia's Public Investment Fund (PIF), the investment has been confirmed by the company's CEO Rony Abovitz.
The investment amount from PIF is $400 million, with an additional $61 million coming from unnamed investors, for a total of $461 million, bringing Magic Leap's overall funding to over $2.3 billion.
"The Magic Leap team and I are happy to welcome the Public Investment Fund and the other new investors to the Magic Leap family," said Abovitz in a statement given to Next Reality. "We look forward to having them join us on our journey to build an amazing future."
The company says that this second closing in its latest round brings its total Series D funding to $963 million.
PIF is also a major investor in Uber, to the tune of $3.5 billion back in 2016. But that's an investment in a global network of drivers, cars, and soon, self-driving cars, all generating revenue from real and fairly loyal customers.
In Magic Leap's case, there's not even a product on the market. And even if the Magic Leap One turns out to be as amazing as some users have reported, there's no proof that there's $2.3 billion worth of consumer interest to justify the massive investment in the company. Nevertheless, the list of investors backing Magic Leap (Google, Alibaba, and others) is generally considered smart money, so while it's a big gamble, the bets are being placed by some of the best gamblers on the planet.
Now, all we need to see is an actual product for sale and the public's reaction to it. No pressure, Rony, no pressure.
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