Microsoft is shifting the entire IVAS contract to Anduril, a move that comes as the US Army considers launching a follow-on competition for mixed-reality goggles. The transfer would see Anduril assume oversight of development, hiring decisions, and production.
The shift has sparked concerns among some industry observers, who warn that it could provide an unfair advantage to Anduril over competitors. However, Anduril’s founder Palmer Luckey believes the company’s experience with military applications will give it an edge in winning Army contracts.
Luckey notes that Anduril is no stranger to competing against established players and plans to use the IVAS contract as a stepping stone for its own technology development. The first Trump administration initiated the IVAS effort, valuing it at up to $22 billion, but the program has faced numerous challenges, including reliability issues and discomfort among soldiers.
The Army’s operational assessment of the current version, 1.2, is expected to be completed in April-June, with findings that will determine whether the service should proceed with a larger production run or limit its purchase. Luckey says Anduril would be ready to move forward with any large-scale buy and plans to produce IVAS technology at its future facility in Columbus, Ohio.
The transfer comes as other companies, including Kopin and Palantir, prepare to compete for the IVAS Next contract. While the Army has not officially blessed the proposed shift, Microsoft executives express confidence that the service will back the move.
Source: https://breakingdefense.com/2025/02/microsoft-announces-plan-to-slide-22-billion-ivas-contract-over-to-anduril