Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Microsoft earns contract worth up to $21.9 billion to make AR devices for the US Army

Microsoft earns contract worth up to $21.9 billion to make AR devices for the US Army

Microsoft has scored another major government contract, this time to produce augmented reality devices for the US Army.
The Army announced Wednesday that it had awarded Microsoft (MSFT) a contract to produce augmented reality systems based on its HoloLens 2 device called Integrated Visual Augmented Systems (IVAS). The devices are designed to help soldiers, "fight, rehearse and train using a single platform," the Army said.

The deal has a five-year base and a five-year option to extend, and could be worth up to almost $21.9 billion over the full 10 years. The Army's initial objective is to provide systems for its entire Close Combat Force (CCF), which will mean making more than 120,000 devices, Microsoft said.

The contract is a continuation of existing work on the devices that Microsoft has done for the US Army. In 2018, the tech giant was awarded a $479 million contract to create prototypes of the devices, and the new agreement announced Wednesday will take them into production and into the field.

Microsoft worked closely with the Army to create the devices and software that goes with them, which are designed to provide soldiers in the Close Combat Force with "improved situational awareness, target engagement, and informed decision-making necessary to achieve overmatch against current and future adversaries," the Army said.

"We appreciate the partnership with the U.S. Army, and are thankful for their continued trust in transitioning IVAS from rapid prototyping to rapid fielding," Microsoft said in a blog post. "We look forward to building on this successful partnership with the men and women of the U.S. Army Close Combat Force."

This is just the latest large military contract Microsoft has received. In 2019, Microsoft was granted a $10 billion contract to supply cloud services to the Department of Defense (though its rival, Amazon (AMZN), is still waging a legal contest against that decision).

Microsoft has faced some criticism from employees related to its work on the HoloLens project for the Army, but CEO Satya Nadella defended it, saying the company would not "withhold technology from institutions that we have elected in democracies to protect the freedoms we enjoy."

Wall Street, however, will likely approve. In addition to deepening its relationship with the US Department of Defense, the deal demonstrates the opportunity for Microsoft to monetize its AR and HoloLens technology, Wedbush analyst Dan Ives said in a note to investors Wednesday.

Ultimately, Microsoft could "expand the use cases across the enterprise (R&D, healthcare) and consumer landscape especially with price points expected to come down over the coming year," Ives said.

Microsoft's (MSFT) stock spiked following the announcement, and ended Wednesday up more than 1.5%.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
A monster hit and a billion-dollar toy empire
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
Canada: Nurse Suspended and Fined 93 Thousand Dollars After Stating the World’s Most Well-Known Fact Since the Creation of Adam and Eve, That There Are Only Two Genders
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
U.S. Treasury Secretary Whitney Bessent Backs Stablecoins to Boost Treasury Demand
Spain to Declare Disaster Zones After Massive Wildfires
Three-Minute Battery Swap Touted as Future of EVs
Beijing Military Parade to Showcase Weapons Advances
U.S. Tech Stocks Slide on AI Boom Concerns
White House Confirms Talks Over Intel Stake
Trump Suggests U.S. Could Support Ukraine ‘By Air’
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
UK Government Tries to Sue 4chan for Breaching Online Safety Act
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
"Every Centimeter of Your Body Is a Masterpiece": The Shocking Meta Document Revealed
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
Beijing is moving into gold and other assets, diversifying away from the dollar
China Requires Data Centres to Source Majority of AI Chips Locally, For Technological Sovereignty
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
Jellyfish Swarm Triggers Shutdown at Gravelines Nuclear Power Station in Northern France
OpenAI’s ‘PhD-Level’ ChatGPT 5 Stumbles, Struggles to Even Label a Map
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×