Microsoft to Produce HoloLens-Based Augmented Reality Headsets Under Potential $22B Army Contract

Microsoft (Nasdaq: MSFT) has received a contract from the U.S. Army to transition a HoloLens-based augmented reality headset from prototyping to the production and rapid fielding phase.

Alex Kipman, a technical fellow at Microsoft, wrote in a blog post published Wednesday that the Integrated Visual Augmentation System, which is backed by Microsoft Azure cloud services, “delivers enhanced situational awareness, enabling information sharing and decision-making in a variety of scenarios.”

CNBC reported that Microsoft will produce and deliver more than 120,000 IVAS devices to the Army under the contract that could be worth approximately $21.88 billion over a period of 10 years.

The Army said IVAS uses machine learning, augmented reality and high-resolution night, soldier-borne and thermal sensors to enable warfighters to rehearse, fight and train using a single system.

Microsoft will deliver the system to the service’s close combat force under the fixed-price production contract that was awarded on Friday.

In November 2018, the Army awarded Microsoft a $480 million other transaction agreement to produce IVAS prototypes.

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