Saudi Arabia’s sovereign wealth fund are in discussions with Magic Leap to secure an investment of $400 million, according the Financial Times.
Magic Leap are developing virtual reality glasses and have managed to secure $2.3bn in investments, although the glasses have not been put on sale, as of yet.
The amount the Public Investment Fund (PIF) are to invest is yet to be announced, however, it will be based off a company valuation of $6 billion.
This investment will place the PIF among the likes of Alibaba, Google and Fidelity in backing Magic Leap.
The Magic Leap glasses encompasses a “mixed reality” using technology called a “digital lightfield”, this allows the user to see virtual reality within their real world setting.
Magic Leap are also developing a headset, however the part that investors are showing most interest in is the software and optics systems that power the digital lightfield visuals in such a small device.
This is not the PIF’s first investment in the tech-start up scene, they also invested $3.5 billion into Uber back in 2016. The wealth fund, worth $230 billion, has been the focus of Crown Prince Mohammed bin Salman’s efforts to diversify the kingdom’s economy away from oil.