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Why are people still giving Magic Leap money?

If Magic Leap fails, the skeptics will at least have to admire the AR startups keen ability to raise vast amounts of capital.
The company announced today that it has locked down another $280 million in a deal with Japans largest mobile operator, Docomo. The deal brings the companys ever-swelling total cash raised to $2.6 billion. The deal follows an investment from AT&T last year also focused on the companys cloud ambitions.
DOCOMO aims to co-create advanced MR services and expand the XR market by leveraging open innovation and combining innovative technologies such as Spatial Computing provided by Magic Leap with DOCOMOs assets including our 5G network and 70 million membership base, Docomo CEO Kazuhiro Yoshizawa said in a press release.
This new money arrives as the company devotes more attention to the Magicverse, its plan for a spatially mapped digital infrastructure layer that can be a foundational step for cloud AR experiences. Magic Leap probably makes more sense as a cloud platform play over a hardware play, given where the market is, but it really isnt clear what their advantages are compared to cloud incumbents like Microsoft, Amazon or Google with teams also focused on AR/VR.
Sure, theyve partnered with these telecoms for 5G, but its unclear what those high-profile-conscious couplings do for Magic Leap if their hardware hopes (and the broader market they fit into) are far, far less-realized than 5G tech even is.
The company has just sunk so much money into its hardware, and their business there might not end up looking markedly different than Facebooks Oculus (i.e. a slowly filling money pit) if the startup continues in its ambitions as a consumer company. The companys sole product, the Magic Leap One, retails for $2,295.

Magic Leap and other AR startups have a rough 2019 ahead of them
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