Anduril takes over Microsoft's $22B headset project for US Army
What's the story
Anduril, a defense tech start-up co-founded by Palmer Luckey, has taken over the development and production of Microsoft's headset program for the US Army. The $22 billion deal is still pending approval from the US Department of Defense. The takeover will see Anduril at the helm of Integrated Visual Augmentation System (IVAS) project, a program aimed at giving soldiers a wearable system that combines augmented reality (AR) and virtual reality (VR).
Use
What will the IVAS do?
The IVAS would improve situational awareness and enable mission command of unmanned systems. Under the deal, Microsoft Azure will be Anduril's preferred hyperscale cloud for all workloads of IVAS and Anduril AI technologies.
Business alliances
Anduril's strategic partnerships and funding prospects
Along with the Microsoft deal, Anduril has also announced partnerships with OpenAI and Palantir to improve the use of defense data for training AI. The news comes just days after reports that the defense start-up is in talks for a new funding round that could raise its valuation to $28 billion.
Project history
Microsoft's journey with the Army
Microsoft started its partnership with the US Army in 2019, employing a modified HoloLens 2 for a headset that reportedly resembled "a real-life game of Call of Duty." However, early prototypes suffered from problems like inducing nausea, eyestrain, and headaches for users. The headsets' bulkiness and an emitted glow that could risk exposing soldiers to enemies were other issues. These problems prompted Congress to reject the Army's request to buy 6,900 pairs as part of a 2023 government funding bill.
Project outlook
US Army's ongoing testing and future plans
The Army is currently testing the latest IVAS prototypes and hopes to bring down the cost of each headset significantly from its current projected price of $80,000 (around ₹69.5 lakh). While the Army could order as many as 121,000 devices, the new version would still have to pass a high-stress combat test this year before going into full production.