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March 31, 2021 07:27 pm

Microsoft Wins US Army Contract for Augmented-Reality Headsets, Worth Up To $21.9 Billion Over 10 Years

The Pentagon announced that Microsoft has won a contract to build more than 120,000 custom HoloLens augmented-reality headsets for the U.S. Army. The contract could be worth up to $21.88 billion over 10 years, a Microsoft spokesperson said. From a report: The deal shows Microsoft can generate meaningful revenue from a futuristic product resulting from years of research, beyond core areas such as operating systems and productivity software. It follows a $480 million contract Microsoft received to give the Army prototypes of the Integrated Visual Augmented System, or IVAS, in 2018. The new deal will involve providing production versions. The standard-issue HoloLens, which costs $3,500, enables people to see holograms overlaid over their actual environments and interact using hand and voice gestures. An IVAS prototype that a CNBC reporter tried out in 2019 displayed a map and a compass and had thermal imaging to reveal people in the dark. The system could also show the aim for a weapon. "The IVAS headset, based on HoloLens and augmented by Microsoft Azure cloud services, delivers a platform that will keep soldiers safer and make them more effective," Alex Kipman, a technical fellow at Microsoft and the person who introduced the HoloLens in 2015, wrote in a blog post. "The program delivers enhanced situational awareness, enabling information sharing and decision-making in a variety of scenarios."

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