Microsoft is discontinuing HoloLens after losing billions of dollars on the project. The company's 10-year IVAS contract to make goggles for the Army is worth up to $22 billion.

COSTA MESA, Calif., and REDMOND, Wash. — Feb. 11, 2025 — Microsoft Corp. and Anduril Industries, a leader in defense technology, today announced an expanded partnership to drive the next phase of the ...

Microsoft and Anduril Industries have broadened their collaboration to boost the next stage of the US Army's Integrated Visual Augmentation System (IVAS) programme. Subject to the US Department of ...

Anduril and Microsoft partner to advance the IVAS program, delivering next-gen AR/VR and AI capabilities to the US Army, enhancing battlefield awareness and mission command.

Microsoft’s HoloLens 2-based IVAS has faced a number of challenges since it was first awarded the U.S. Army defense contract in 2019, worth up to $22 billion.

Microsoft’s IVAS team will move over to Anduril, said one source familiar with the discussions, who added that the Pentagon has been largely supportive of the proposal.

IVAS was initially awarded to Microsoft in 2018 to develop augmented reality headsets for soldiers based on a ruggedized version of HoloLens. The initial budget for IVAS was set at $21.9 billion.

In a shocking development, Anduril announced earlier this month that it is partnering with Microsoft (MSFT 1.58%) to develop an Integrated Visual Augmentation System (IVAS) for the U.S. Army.

The U.S. Army is still reportedly gung-ho on IVAS, just as much as it was last year.A 2022 report showed U.S. soldiers who used IVAS 1.0 were less combat-effective than those who went without. At ...

Microsoft’s initial IVAS headset, based on HoloLens technology, first went into trials in 2021 and includes integrated thermal and night vision imaging sensors in a heads-up display.