Anduril Takes Over Microsoft’s $22 Billion US Army Headset Program
On 11 February 2025, Microsoft Corp. and Anduril Industries, a leading defense technology company, announced a strategic partnership to advance the next phase of the U.S. Army’s Integrated Visual Augmentation System (IVAS) program. Through this partnership agreement and pending approval of the Department of Defense, Anduril will assume oversight of production, future hardware and software development, and delivery timelines. The IVAS program is designed to enhance soldier performance and situational awareness through advanced augmented reality (AR) and artificial intelligence (AI) technologies, marking a significant step forward in modernizing military capabilities.
The collaboration between Anduril and Microsoft brings together the strengths of both companies to advance the U.S. Army’s IVAS program. This partnership ensures program continuity while focusing on key goals like improving combat effectiveness, battlefield awareness, and decision-making. Anduril’s expertise in defense innovation, understanding of military needs, and efficient manufacturing processes will help develop IVAS to meet the Army’s evolving requirements. The collaboration also aims to deliver large-scale production at lower costs, providing advanced, cost-effective technology to enhance soldier performance on the battlefield.
This agreement also designates Microsoft Azure as the preferred cloud platform for all IVAS-related workloads, ensuring secure, scalable, and efficient data processing. Microsoft originally won the $22 billion contract back in 2021, building off its work with HoloLens. Microsoft and Anduril have previously worked together to integrate Anduril’s Lattice platform into the U.S. Army’s IVAS, providing fast, AI-powered situational awareness to improve soldier safety and mission success. This new partnership strengthens their collaboration, combining Microsoft’s expertise in cloud computing and artificial intelligence with Anduril’s advanced defense manufacturing capabilities. The goal is to drive further innovation, improve operational efficiency, and deliver cutting-edge technology to support military operations. This expanded alliance highlights the growing role of AI, AR, and secure cloud platforms in enhancing defense systems for the future.
Anduril’s founder, Palmer Luckey, who previously established Oculus VR, brings significant expertise in virtual reality to this initiative. The IVAS program aims to equip soldiers with a wearable system that integrates augmented reality and virtual reality technologies to enhance situational awareness and mission command capabilities.