Anduril, a defense technology startup founded by Palmer Luckey, will assume control over the development and production of Microsoft’s $22 billion Integrated Visual Augmentation System (IVAS) program for the U.S. Army, the companies confirmed on Tuesday. Under the new agreement, Anduril will manage production, future hardware and software development, and oversee delivery timelines for the project.
The IVAS program aims to equip soldiers with a mixed-reality headset that combines augmented reality (AR) and virtual reality (VR) to enhance situational awareness and support the command of unmanned systems. As part of the deal, Microsoft Azure will serve as Anduril’s preferred hyperscale cloud platform for all workloads related to IVAS and Anduril’s AI technologies.
Microsoft initially developed its HoloLens technology for use in military headsets in collaboration with the U.S. Army, but Anduril will now take the lead in its execution. The agreement is still awaiting approval from the U.S. Department of Defense.
Luckey, who previously founded Oculus VR, which was acquired by Facebook in 2014 for $2.3 billion, is no stranger to the defense sector. Anduril has also formed partnerships with OpenAI and Palantir to leverage defense data for artificial intelligence training, further strengthening its position in the military tech space. The news comes as Anduril is reportedly in talks for a new funding round that could push the company’s valuation to $28 billion.