Google and other major investors like Andreessen Horowitz could be on the brink of making a major $500 million investment in a "cinematic reality" startup called Magic Leap, sources tell Re/code's Liz Gannes and Peter Kafka.

Magic Leap describes itself as being a "developer of novel human computing interfaces and software" and just closed a $50 million+ Series A round in February. The company is working on a new kind of augmented reality — that it calls cinematic reality — that it believes will provide a more realistic 3D experience than anything else that's out there today.

Instead of creating an immersive virtual world seperate from the real world, like the Rift headset from Oculus VR (which Facebook bought for $2 billion earlier this year), Magic Leap will weave "3D light sculptures" into the world around us, using a combination of proprietary hardware, software, and firmware.