Saudi Arabia’s PIF Invests Additional $205 Million in Struggling VR Firm Magic Leap
Saudi Arabia's Public Investment Fund has injected another $205 million into Magic Leap, the augmented reality startup that has struggled to find commercial success despite raising over $4 billion since its 2010 founding. The latest cash infusion comes as the sovereign wealth fund quietly assumed control of the company in 2022.
Magic Leap's trajectory mirrors the volatility of emerging tech sectors. Initially promising revolutionary mixed-reality headsets, the company pivoted to enterprise AR solutions after its 2018 consumer product flopped, resulting in massive layoffs. The Saudi backing forms part of Crown Prince Mohammed bin Salman's Vision 2030 strategy to diversify beyond oil, with PIF deploying tens of billions into tech ventures including gaming and entertainment.
