The Public Investment Fund (PIF) has invested USD 205 mn in US-based augmented reality solutions provider Magic Leap over the past several months, raising its total investment in the firm to over USD 1 bn, The Telegraph reported on Saturday. The sovereign wealth fund became the majority shareholder of Magic Leap in 2022, before funneling USD 750 mn into the tech developer between 2023 and 2024, Bloomberg previously reported. Magic Leap has so far failed to record a positive bottomline.

Where will the money go? The latest funding is expected to drive the rollout of Magic Leap’s industry-focused extended reality (XR) tools. The AR and XR solutions developer has raised more than USD 4 bn in debt and equity funding to date and plans to seek additional capital through 2025 and 2026 to sustain operations and bolster liquidity.

About the company: Founded in 2010, the Florida-based developer gained early attention as one of the most well-funded startups in tech history, raising USD 3 bn ahead of its first headset launch with backing from several major investors, including Alphabet Inc.’s Google, Alibaba Group, and AT&T. Following weak performance from its debut consumer headsets, it changed course under its new CEO Peggy Johnson to focus on enterprise applications — developing AR solutions in healthcare, industrial manufacturing, and defense sectors, and forming partnerships with Siemens and Cisco.

REMEMBER- PIF has been accelerating its investments in tech companies in 2025, including joining in a consortium to acquire Electronic Arts and reportedly launching a USD 10 bn AI VC fund through its AI venture Humain last summer. US-based game developer Scopely, a subsidiary of PIF’s Savvy Games Group, also purchased rights to Pokémon Go and several other titles from Niantic for USD 3.5 bn.

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