Magic Leap raises $500M and unveils Magic Leap 2 AR headset for subsequent 12 months

Magic Leap raised $500 million at a $2 billion valuation and unveiled its Magic Leap 2 AR headset for subsequent 12 months.

CEO Peggy Johnson mentioned on CNBC that some clients try out the brand new headset and basic availability would occur in 2022.

“This funding is a crucial step in advancing Magic Leap’s mission to remodel the way in which we work,” mentioned Johnson, in an announcement. “Since becoming a member of Magic Leap in 2020, my focus has been on accelerating the corporate’s shift to the enterprise market, strengthening our technological basis, and constructing a sturdy enterprise throughout sectors starting from healthcare and manufacturing to protection and the general public sector. With ongoing help from our present buyers, Magic Leap can have higher monetary flexibility and the assets wanted to proceed our progress trajectory as we broaden on our industry-leading AR know-how.”

Magic Leap has gone by way of a whirlwind. Based in 2010 by Rony Abovitz, the corporate got down to be a pioneer in augmented actuality and blended actuality applied sciences. Abovitz raised $2.6 billion in a number of rounds and developed the Magic Leap One, a blended actuality headset that debuted in August 2018.

Above: Peggy Johnson is CEO of Magic Leap.

Picture Credit score: Magic Leap

However gross sales have been sluggish for the $2,295 device, as shoppers didn’t dive into the costly tech. Lastly, in April 2020, Magic Leap determined to close down its shopper division and laid off about 1,000 staff, or half its workforce. In Could 2020, Abovitz introduced he would exchange himself as CEO (whereas staying on the board) simply as the corporate received a serious lifeline with a $350 million increase.

In September 2020, the board appointed Peggy Johnson as CEO. She’s a a former Microsoft government, and this was a part of a plan to double down on the enterprise markets. Enterprises usually tend to purchase costly AR headsets as a result of they will see the worth in functions akin to AR coaching, which can be utilized to exchange costly coaching packages for brand spanking new staff that may price tens of 1000’s of {dollars} or extra.

However there’s a variety of competitors, as there are rivals akin to Varjo, Microsoft HoloLens, and ongoing analysis into aggressive merchandise at locations akin to Fb and Apple. The large platform corporations are little doubt prepared to take a position as a lot as or greater than Magic Leap, as AR is likely one of the contenders to be the subsequent technology of computing.