Magic Leap is reportedly in talks to raise $400 million from Saudi Arabia's sovereign wealth fund

Magic LeapThe Magic Leap headset.

Augmented reality startup Magic Leap is reportedly in talks to raise up to $US400 million (£286 million) from Saudi Arabia’s sovereign wealth fund,The Financial Times reported on Friday.

The newspaper reported that the deal is set to be announced in the coming weeks, and is an extension of the company’s October round of funding.

The investment would bring the total amount raised by Magic Leap to $US2.3 billion (£1.6 billion), even though it’s yet to release a product.

In December, Magic Leap announced the design and name of its first product: The Magic Leap One Creator Edition. The augmented reality company’s first product uses a pair of smart glasses and a belt-mounted computer.

The hardware announced in December was targeted at software developers wishing to build on Magic Leap’s platform. The company said that in “early 2018” it would open up a software-development kit to enable them to create their own augmented reality programs, yet no kit has been released so far.

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