Beautiful Virgin Islands

Monday, Aug 04, 2025

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%.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
Tesla Seeks Shareholder Approval for $29 Billion Compensation Package for Elon Musk
Nvidia is cutting prices on its RTX 50-series graphics cards after sales slowed and inventories piled up
Ghislaine Maxwell Transferred to Minimum-Security Prison Amid Ongoing DOJ Discussions
U.S. Tariffs Surge to Highest Levels in Nearly a Century Under Second Trump Term
Matt Taibbi Slams Media for Role in Russiagate Narrative
Pilots Call for Mental Health Support Without Stigma
All Five Trapped Miners Found Dead After El Teniente Mine Collapse
Ong Beng Seng Pleads Guilty in Corruption Case Linked to Former Singapore Transport Minister
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
Italy Fines Shein One Million Euros for Misleading Sustainability Claims
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
Declassified Annex Links Soros‑Affiliated Officials and Clinton Campaign to ‘Russiagate’ Narrative
UK's Online Safety Law: A Front for Censorship
Nationwide Protests Erupt in Brazil Demanding Presidential Resignation
Parents Abandon Child at Barcelona Airport Over Passport Issue
Mystery Surrounds Death of Brazilian Woman with iPhones Glued to Her Body
Bus Driver Discovers Toddler Hidden in Suitcase in New Zealand
Switzerland Celebrates 734 Years of Independence Amid Global Changes
U.S. Opens Official Investigation into Former Trump Prosecutor Jack Smith
Leaked audio of Canada's new PM Mark Carney admitting the truth about the Net Zero agenda: "We're gonna make a lot of money off of this."
China Enforces Comprehensive Ban on Cryptocurrency Activities
Absolutely 100% Realistic EVO Series Doll by EXDOLL (Chinese Company) used mainly for carnal purposes
World Economic Forum founder Klaus Schwab: "In this new world, we must accept... total transparency. You have to get used to it. You have to behave accordingly. But if you have nothing to hide, you shouldn't be afraid."
Meet Mufti Hamid Patel, head of Office for Standards in Education in Pakistan
George Soros tells the World Economic Forum: "President Trump is a con man and the ultimate narcissist, who wants the world to revolve around him."
Hamas are STARVING the hostages.
Decline in Tourism in Majorca Amidst Ongoing Anti-Tourism Protests
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
Poland Begins Excavation at Dziemiany After New Clue to World War II‑Era Nazi Treasure
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Threatens Canada with Tariffs Over Palestinian State Recognition
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Trump Sues Murdoch in “Heavyweight Bout”: Lawsuit Over Alleged Epstein Letter Sets Stage for Courtroom Showdown
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
×