Anduril Industries, headed by defense-tech pioneer Palmer Luckey, is set to assume control of the U.S. Army’s augmented reality headset project, originally spearheaded by Microsoft. This strategic shift awaits the Department of Defense’s green light but, if approved, will mark a significant milestone for Anduril.
Anduril Industries is positioned to oversee the production, hardware and software development, and delivery timelines of the U.S. Army’s Integrated Visual Augmentation System (IVAS) project. The IVAS aims to bolster soldiers’ capabilities, such as improving night vision. Although Microsoft secured a 10-year contract in 2021 to produce over 120,000 HoloLens headsets worth nearly $22 billion, the tech giant halted production last year. Under the new arrangement, Microsoft will continue to supply cloud and artificial intelligence support for the IVAS program.
This transition comes at a pivotal moment for Anduril, which has been negotiating to raise approximately $2.5 billion at a $28 billion valuation. The defense-tech company also announced a partnership with OpenAI in December and plans to invest about $1 billion in an Ohio manufacturing facility.
Since its establishment in 2017, Anduril has aimed to challenge industry leaders like Lockheed Martin and Northrop Grumman. The company has thrice appeared on the CNBC Disruptor 50 list, claiming the second spot last year. Palmer Luckey, who founded Anduril after his departure from Facebook, has expressed that the IVAS partnership holds personal significance, remarking, “IVAS isn’t just another product. It is a once-in-a-generation opportunity to redefine how technology supports those who serve.”
Luckey is widely recognized for his early support of former President Donald Trump. In 2017, he stated his belief in maintaining America’s military strength as a bipartisan issue. His career in technology began with the founding of Oculus VR, which he sold to Facebook for $2 billion in 2014. Following his exit from Facebook, Luckey continued to advance his vision through the development of innovative defense technologies with Anduril.
Anduril Industries’ potential role in the U.S. Army’s headset program represents a transformative step in defense technology, underscoring Palmer Luckey’s ongoing influence in the field. With backing from government stakeholders, this partnership could redefine the technological landscape for military operations.
