Magic Leap
| Company type | Private |
|---|---|
| Industry | Technology, Augmented reality |
| Founded | 2010 |
| Founder | Rony Abovitz |
| Headquarters | Plantation, Florida , United States |
Area served | Worldwide |
Key people | Peggy Johnson (CEO) |
| Products | Magic Leap One, Magic Leap 2, light-field processor technology |
| Website | magicleap |
Magic Leap, Inc. is a U.S.-based technology company recognized for its head-worn augmented reality device, the Magic Leap One, which integrates 3D computer-generated imagery with the physical environment. The firm is focused on creating a light-field processor utilizing silicon photonics methods.
Established in 2010 by entrepreneur Rony Abovitz, Magic Leap has attracted $2.6 billion in investment from prominent backers such as Google and Alibaba Group. By 2016, Forbes appraised the company’s worth at $4.5 billion. Notable collaborations include a 2018 funding round and exclusive distribution agreement with AT&T, which introduced the Magic Leap One to the U.S. market.
Following a $350 million financing round in May 2020, Abovitz resigned as CEO. Subsequently, in July 2020, Peggy Johnson, formerly an executive at Microsoft, was named CEO, bringing significant expertise in business growth and market development to steer Magic Leap’s future trajectory.
2010–2014: inception and confidentiality
Founded by Rony Abovitz in 2010, Magic Leap originated from "Magic Leap Studios," initially focused on crafting a graphic novel and film series before shifting towards augmented reality applications, debuting an AR app at Comic-Con in 2011. By October 2014, still operating under secrecy, Magic Leap had amassed over $540 million in venture capital from leading investors including Google, Qualcomm, Andreessen Horowitz, and Kleiner Perkins.
Analysis toward the end of 2014 suggested that Magic Leap was developing a product rivaling devices like Google Glass and Oculus Rift, merging virtual graphics with real-world visuals, drawing parallels to Microsoft HoloLens. The company asserts ownership of unique technology capable of projecting images directly onto the retina, likely employing layered silicon waveguides, delivering higher resolution than earlier light field displays showcased by entities such as Nvidia and the MIT Media Lab.
Among key personnel were special effects expert Richard Taylor from Weta Workshop and Chief Creative Officer & Senior VP for Games, Apps, and Creative Experiences, Graeme Devine. Additionally, science fiction writer Neal Stephenson joined in December 2014 to contribute to the company's creative direction.
2015–2018: product previews and announcement
On March 19, 2015, Magic Leap published a demonstration video titled "Just another day in the office at Magic Leap," illustrating augmented reality applications for gaming and productivity; however, it was uncertain whether the footage depicted actual or simulated content.
Later, on October 20, 2015, the company released authentic video captured through a Magic Leap device without post-production effects. This footage demonstrated virtual 3D objects being occluded by physical items, hinting at potential 3D spatial mapping capabilities. It also displayed virtual lighting reflecting on a real table surface; though these reflections appeared integrated within the virtual environment rather than interacting with real-world lighting. The demonstration suggested hardware that could add illumination but not obstruct ambient light, thus limiting rendering to transparent elements capable of emitting or reflecting light.
On December 9, 2015, Forbes reported that Magic Leap had completed a Series C funding round totaling $827 million, potentially raising cumulative funding to $1.4 billion with an estimated valuation of $3.7 billion. By February 2016, additional financing brought total investments close to $800 million more, increasing valuation to $4.5 billion.
In June 2016, Magic Leap entered into a research partnership with Disney's Lucasfilm and its ILMxLAB division at Lucasfilm’s San Francisco facility.
The company revealed the Magic Leap One headset on December 20, 2017, announcing plans for its release in the following year.
On March 7, 2018, Magic Leap secured $461 million during its Series D funding round led by Saudi Arabia’s Public Investment Fund.
By June 2018, images of the Magic Leap One headset were publicly shared online without accompanying functional demonstrations. On July 1, 2018, a demo featuring NVIDIA TX2 hardware was presented; however, public reception was largely underwhelming compared to earlier expectations. The CEO defended the product by emphasizing that its full potential could only be appreciated through firsthand experience.
2018–present: product introductions
On July 11, 2018, AT&T made a strategic investment in Magic Leap, becoming the exclusive retailer for Magic Leap One in the United States, with the device available solely through AT&T outlets. John Donovan, CEO of AT&T Communications, joined Magic Leap’s board to strengthen the company’s strategic direction.
In April 2019, Magic Leap secured $280 million in funding from NTT Docomo as part of a global expansion partnership. By August that year, the firm transferred its U.S. patent portfolio to J.P. Morgan Chase and readied itself for a major Series E funding round.
The outbreak of the COVID-19 pandemic led to a significant organizational overhaul in April 2020, resulting in workforce reductions by half. Nevertheless, Magic Leap succeeded in raising $350 million in May 2020 to sustain its business operations. Despite this infusion, the company’s valuation sharply declined from $6.4 billion in 2019 to approximately $450 million by mid-2020.
In October 2021, following a $500 million investment from an undisclosed source, Magic Leap’s valuation rebounded to $2 billion. The company unveiled the Magic Leap 2 augmented reality headset aimed at enterprise users, highlighting its competitive edge with the "smallest and lightest" design, an expanded field of view, and improved performance in bright lighting conditions.
The official release of Magic Leap 2 took place on September 30, 2022, reinforcing the company’s commitment to business-oriented augmented reality solutions.
Magic Leap announced that cloud support for Magic Leap One would be discontinued on December 31, 2024. This termination will render the device and its applications nonoperational, signaling a transition toward newer technologies.
In July 2024, Magic Leap underwent a strategic restructuring that involved eliminating around 75 positions, including entire sales and marketing departments. Concurrently, the company established a collaboration with Google to capitalize on combined technological strengths.
By August 2024, total capital raised by Magic Leap exceeded $3.5 billion, which included a $750 million investment from Saudi Arabia’s Public Investment Fund, demonstrating robust investor confidence despite prior financial setbacks.
As of December 2024, support for Magic Leap One was abruptly ended with the shutdown of cloud services, encouraging users to migrate to newer models and reflecting an evolution in the company’s product lifecycle and business strategy.
Magic Leap 1 hardware
The Magic Leap 1 headset utilizes a liquid crystal on silicon (LCOS) display panel for each eye to deliver its sophisticated augmented reality experience.
Acquisitions
- April 2016: Integrated Israeli cybersecurity firm NorthBit to bolster security capabilities.
- February 2017: Acquired the 3D division of Swiss computer vision company Dacuda to enhance three-dimensional scanning technology.
- Early 2018: Purchased military-focused startup Chosen Realities to expand defense sector applications.
- May 2019: Acquired Belgian startup Mimesys, known for volumetric video conferencing software compatible with Magic Leap’s platform.
See also
Further reading
External links
- Articles with short description
- American companies established in 2010
- Technology companies established in 2010
- Technology companies of the United States
- Companies based in Broward County, Florida
- Augmented reality
- Virtual reality companies
- 2010 establishments in Florida
- Plantation, Florida
- Wearable devices
- Spatial computing
- Companies of the United States by year of establishment
- 5