London Daily

Focus on the big picture.
Wednesday, Sep 03, 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

0:00
0:00
Close
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
Israeli Airstrike in Yemen Kills Houthi Prime Minister
Ukrainian Nationalist Politician Andriy Parubiy Assassinated in Lviv
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
×