Anduril Takes Control of $22 Billion US Army Headset Program

Anduril Industries is set to take over Microsoft's contract for the U.S. Army's Integrated Visual Augmentation System (IVAS) due to ongoing delays and performance issues with the project. Originally awarded to Microsoft in 2018, the IVAS program aimed to create augmented reality headsets for soldiers but has faced numerous challenges, leading to concerns about its usability and effectiveness as highlighted by a 2022 Department of Defense report. Although Microsoft will no longer be the prime contractor, it will continue to provide cloud services for the project. Anduril, founded by Palmer Luckey, will oversee production and future developments, leveraging its existing Lattice software to enhance the headsets with AI capabilities. The transition is pending approval from the Department of Defense, with both companies optimistic about the partnership's potential. The total funding for the IVAS initiative is estimated at $21.9 billion, emphasizing the project's significance to military operations.