Magic Leap, the AR startup responsible for the Magic Leap and Magic Leap 2 AR headsets, is now in the hands of Saudi Arabia. The country spent $450 million to gain more than a 50 percent stake in Magic Leap. According to the Telegraph, Saudi Arabia’s Public Investment Fund (PIF) is now able to appoint half of the eight “directors of the board of directors of Magic Leap.”
Crown Prince Mohammed bin Salman runs the PIF, which he uses to make strategic investments with the intent of diversifying the economy. Saudi Arabia has gained a stake in companies such as Disney, Capcom, Uber and Boeing through PIF.
Saudi Arabia raised $400 million to invest in Magic Leap back in 2018. Now with majority control of the AR headset developer Saudi Arabia has joined the mixed reality market. Magic Leap has yet to make an official statement concerning the deal.
What is Magic Leap?
Since its founding in 2010, Magic Leap has received funding from various sources, including Warner Bros. and Google. The company reportedly raised $4 billion in funding in 2016 and the Magic Leap 1 released two years later. Upon release, however, many found the headset underwhelming.
However, Magic Leap 2 launched in September and is receiving more positive reviews. The headset, which is intended for use by engineers, surgeons and other professionals, retails for $3,299. Ahead of the Magic Leap 2’s release, the company gave several healthcare partners, such as SyncThink, early access to the headset.
Saudi Arabi Enters The Gaming Industry
Beyond investing in Magic Leap, Saudi Arabia ready to spend billions on the gaming industry. Saudi Arabia’s Savvy Games Group has raised $37.8 billion, which it will use to invest in existing game companies around the world. The news came shortly after the country launched its National Gaming and Esports Strategy, which will bring 39,000 jobs to Saudi Arabia. This isn’t surprising, considering how passionate Saudi gamers are about esports.
Jack Brassell is a freelance journalist and aspiring novelist. Jack is a self-proclaimed nerd with a lifelong passion for storytelling. As an author, Jack writes mostly horror and young adult fantasy. Also an avid gamer, she works as the lead news editor at Hardcore Droid. When she isn't writing or playing games, she can often be found binge-watching Parks & Rec or The Office, proudly considering herself to be a cross between Leslie Knope and Pam Beasley.
