Little is known about Magic Leap's product, but founder and CEO Rony Abovitz said in February that his company's mission was to "develop and commercialize.. the most natural and human-friendly wearable computing interface in the world."
Investors in the latest round included Qualcomm Inc , the world's No.1 mobile phone chipmaker, Andreessen Horowitz, KKR and Legendary Entertainment.
A key part of Magic Leap's plans involves a wearable device that will track users' eyeballs and project images on to them, sources told technology blog Re/code.
On Oculus Rift and every other virtual and augmented reality experience, what the viewer sees is flat and floating in space at a set distance. What Magic Leap purports to do is make the viewer think they're seeing a real 3D object on top of the real world, Re/code wrote.
Facebook Inc bought Oculus Rift for $2 billion earlier this year.
Florida-based Magic Leap said it would use the funds for product development, among other things.
© Thomson Reuters 2014