Magic Leap, an augmented reality startup in stealth mode, has raised $542 million in a Series B round of financing. The financing was led by Google, with participation from Qualcomm, through its venture investment group, Qualcomm Ventures. Other investors in the round include Legendary Entertainment (with its CEO Thomas Tull making a personal investment as well), KKR, Vulcan Capital, Kleiner Perkins Caufield & Byers, Andreessen Horowitz, Obvious Ventures, and other investors.

Magic Leap says the company will use the proceeds to accelerate product development, release software development tools, expand its content ecosystem, and commercialize its proprietary mobile wearable system.

Rony Abovitz (President, CEO and founder, Magic Leap): Magic Leap is going beyond the current perception of mobile computing, augmented reality, and virtual reality. We are transcending all three, and will revolutionize the way people communicate, purchase, learn, share and play.

Sundar Pichai, SVP of Android, Chrome and Apps at Google is joining Magic Leap’s board of directors. Dr. Paul Jacobs, executive chairman of Qualcomm and Don Harrison, vice-president, Corporate Development at Google are signing on as board observers. Allen & Company and Morgan Stanley & Co. served as financial advisors to Magic Leap in connection with the transaction.

Magic Leap was founded in 2011 by Rony Abovitz. It is headquartered in Florida with locations in Santa Cruz, Los Angeles, Mountain View, Seattle, Austin, and New Zealand.

[Image courtesy: Magic Leap]

Update: 10-25-14