Magic Leap, the company which has been associated with some of the most jaw dropping claims about augmented reality, may not yet have the technology it has claimed, suggest reports.

One day, augmented reality will be big – there seems little doubt about that. Tim Cooke, the Apple CEO has suggested that it’s commercial potential is greater than Victual Reality’s. But fears that it is more hype than reality have surfaced, after claims that Magic Leap, the AR firm that has been producing jaw dropping demos, does not boast the kind of technology it has suggested.

Magic Leap is the company that has produced demos showing people holding an elephant in the palm of their hand, a killer whale jumping out of the floor boards in a sports hall, and the famous Beast game, in which users can shoot at aliens invading their office.

Frankly, there is good reason to have high expectations of AR, and tech watchers are right to be excited by it, but even tech bulls had their doubts about Magic Leap, the demos didn’t really tell us anything about the tech, they were more like artist’s impression of what it might do one day.

During the infamous South Sea bubble on the 1720s, one company tried to raise money for a business "For carrying-on an undertaking of great advantage but no-one to know what it is!!”. By contrast, the Magic Leap CEO, Rony Abovitz, has described the company as “A leading river of light that transmits the feelings of magic.”

Okay the company has raised a lot of money – around a billion, and the likes of Google, which is backing it, seems to think the company is on to something.

Now Mr Abovitz, in an interview with The Information has suggested that the company has had to make compromises in its key fibre scanning display.

But, The Information also claims to have received a product demo, and it does not seem to have been too impressed, describing it as similar to Microsoft’s HoloLens, with blurrier images.