Microsoft wins $ 21 billion contract with military to supply HoloLens augmented reality headsets



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The Pentagon has awarded a long-term contract to Microsoft to build more than 120,000 augmented reality headsets for the US military, officials said Wednesday.

Microsoft will produce IVAS (Integrated Visual Augmentation System) headsets equipped with its HoloLens technology. The contract is worth up to $ 21.88 billion over a 10-year period, according to Microsoft.

“The IVAS headset, based on HoloLens and complemented by Microsoft Azure cloud services, provides a platform that will keep soldiers safe and more efficient,” Microsoft said in a blog post. “The program provides better situational awareness, enabling information sharing and decision making in a variety of scenarios.”

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The contract was announced two years after Microsoft was awarded a $ 480 million contract to work with military officials to develop a prototype headset. This agreement included an option for the military to purchase more than 100,000 helmets if the prototype phase proved successful.

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Microsoft shares rose more than 1% in trading. The company’s “HoloLens” technology was originally developed for entertainment purposes.

Army officials said the expanded partnership would benefit personnel by providing improved training capabilities and improving situational awareness on the ground.

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“The suite of capabilities takes advantage of the high-resolution night, thermal, and soldier-worn sensors integrated into a unified heads-up display to provide enhanced situational awareness, target engagement and informed decision-making necessary to achieve an over alignment against current and future opponents. The US military added in a press release.

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Microsoft has faced reluctance from its employees because of its work as a military contractor. In February 2019, dozens of workers wrote a letter to Microsoft CEO Satya Nadella and President Brad Smith, calling on the company to end work on the IVAS headset and develop technology with military applications.

The Associated Press contributed to this report.

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