Microsoft is stepping back from the hardware aspect of the Integrated Visual Augmentation System (IVAS), a project designed for the U.S. Army. While Microsoft will still provide the system with its advanced cloud solutions and AI capabilities, the manufacturing responsibilities have now been passed to Anduril Industries, a defense company co-founded by Palmer Luckey, who is known for his work with Oculus VR.

Luckey emphasized that Anduril’s focus will allow for specialized program developments catering to the Army’s evolving requirements. This shift aims to reduce costs per unit of the IVAS headsets, reflecting a critical concern from military officials, especially after a $22 billion contract with Microsoft faced scrutiny over performance and usability issues.

“The IVAS program embodies the future of mission command, merging technological advancements with human potential to enhance soldiers’ effectiveness on the battlefield,” stated Luckey.

He also mentioned that the ultimate objective is to create an integrated military ecosystem that leverages technology as an extension of human capabilities.

Moreover, Luckey provocatively suggested that future advancements could lead to transforming warfighters into ’technomancers,’ a concept originating from earlier Anduril proposals.

This significant realignment comes on the heels of Microsoft’s decision to cease hardware production of its HoloLens 2 devices, reaffirming the company’s shift towards software solutions and AI capabilities for military and other applications.