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 $400 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 $2.3 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.