At&T today announced they will be investing in Magic Leap, an augmented reality startup, and will become the exclusive “wireless” distributor of Magic Leap products in the U.S. beginning this summer. This announcement follows At&T’s deal to buy TimeWarner for $85 billion and buying ad firm AppNexus for up to $2 billion.
At this time, it is unclear the exact financial terms of the investment stake. Magic Leap has recently completed a round of funding in March that was led by Singapore’s Temasek. It valued the startup at $6.3 billion, with $963 million raised in the Series D round.
The investment in Magic Leap demonstrates At&T’s seriousness about AR, which is projected to become a $90 billion market in the next five years.
“When available for consumers, AT&T customers will be among the first to experience it in select AT&T stores in Atlanta, Boston, Chicago, Los Angeles, and San Francisco, with more markets to follow,” AT&T said today.
This recent agreement also gives exclusive distribution rates to At&T of the first device, the Magic Leap One, Creator Edition. It also gives At&T exclusive rights to work with Magic Leap across different areas, including network access, content distribution, and devices.
“AT&T is excited to pair our pioneering technologies, unmatched network, content platform, and vast customer ecosystem with Magic Leap’s efforts to build the next generation of computing,” said AT&T Communications CEO John Donovan, in a statement. “We’re designing and offering the future of entertainment and connectivity, and this exclusive arrangement – in combination with our 5G leadership position – will open up new opportunities and experiences.”
While Magic Leap has raised considerable funds, they have yet to release their first product. However, the Magic Leap One is expected to be released later this year. The product is described as a “lightweight, wearable computer that will enrich real world experience with digital content.”