Saudi Arabia Invests $750 Million in Augmented Reality
Since early 2023, Saudi Arabia’s Public Investment Fund (PIF) injected more than $750 million into Magic Leap, an augmented reality company. The investments were split into two tranches: $590 million at the start of 2023 and $160 million a year later as convertible debt.
On this page
Since early 2023, Saudi Arabia's Public Investment Fund (PIF) injected more than $750 million into Magic Leap, an augmented reality company. The investments were split into two tranches: $590 million at the start of 2023 and $160 million a year later as convertible debt.
This agreement allows the creditor to either convert the debt into company shares at a discounted rate or receive the loan amount with interest after meeting all conditions. Despite these and earlier investments amounting to $3.5 billion, Magic Leap still needs additional funds to fulfill previous obligations.
The company aims to secure new funding in three phases: by the end of August 2024, and then in January and June 2025. According to preliminary reports, negotiations with a potential investor are ongoing, but Magic Leap and PIF representatives have declined to comment.
Previously, Magic Leap experienced a major setback: its first product, launched in 2018, failed entirely, resulting in an 80% staff reduction and the complete shutdown of sales and marketing departments to focus exclusively on licensing their technologies.
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
