Palmer Luckey’s Anduril Industries Takes the Helm of U.S. Army’s IVAS AR Program from Microsoft

In Augmented Reality and Mixed Reality News

February 13, 2025 – Microsoft Corporation and Anduril Industries, a defense technology company founded by Palmer Luckey (the founder of Oculus VR), have this week announced an expanded partnership to support the next phase of the U.S. Army’s Integrated Visual Augmentation System (IVAS) program.

Under the agreement, pending Department of Defense approval, Anduril will take on responsibilities related to production, hardware and software development, and delivery timelines. Microsoft Azure will also become Anduril’s preferred hyperscale cloud platform for workloads associated with IVAS and its artificial intelligence (AI) technologies.

The IVAS system, based on Microsoft’s HoloLens mixed reality (MR) headset, is designed to provide soldiers with enhanced situational awareness through augmented reality (AR) and virtual reality (VR) capabilities. The system integrates advanced sensors, AI-driven insights, and a heads-up display to improve decision-making and operational effectiveness on the battlefield.

Anduril, which has focused on defense technology since its founding in 2017, will oversee the production and further development of IVAS. The company’s background in military-focused innovation will be leveraged to not only adapt the technology to evolving operational requirements of the U.S. Army, but also to ensure production at scale and lower unit cost.

Palmer Luckey, Founder of Anduril Industries, highlighted the potential impact of the partnership: “The IVAS program represents the future of mission command, combining technology and human capability to give soldiers the edge they need on the battlefield.” He added, “The ultimate goal is to create a military ecosystem where technology acts as an extension of human capability. By empowering soldiers with the tools they need to make faster, smarter decisions, we’re building a future where technology and human ingenuity combine to ensure mission success.”

Robin Seiler, Corporate Vice President of Mixed Reality at Microsoft, reflected on the program’s development: “We are incredibly proud of the work our teams have put in to help the U.S. Army transform its concept of a soldier-borne, AR headset into reality with the IVAS program.” Seiler added, “We are excited to partner with Anduril for the next phase of IVAS and leverage our combined strengths to meet our commitments on this vital program and deliver a game-changing capability for every U.S. soldier.”

IVAS has undergone several iterations since its inception, with Microsoft facing challenges with the project at times, for example with reports of soldiers experiencing nausea and headaches during testing. In response, design changes and adjustments have been made based on extensive soldier feedback, and have included a more compact headset, improved sensor performance, and better weight distribution for comfort.

The IVAS system integrates real-time 3D mapping, vehicle-mounted sensors, and low-light and thermal imaging capabilities, with the embedded Squad Immersive Virtual Trainer (SiVT) providing a mixed reality environment for mission scenario practice. These capabilities rely heavily on efficient data processing and AI-driven insights—a need that, with this latest agreement between Microsoft and Anduril, sees Azure established as the primary cloud platform for IVAS-related workloads.

Microsoft and Anduril have previously collaborated to integrate Anduril’s Lattice platform into IVAS to provide rapid AI-enabled situational awareness capabilities to enhance soldier safety and operational effectiveness. This new agreement between the two companies marks a shift in program responsibilities, but seems ultimately designed to maintain continuity in the development of the multi-billion dollar IVAS project for the U.S. Army.

Image credit: Anduril Industries

About the author

Sam is the Founder and Managing Editor of Auganix. With a background in research and report writing, he has been covering XR industry news for the past seven years.

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