Palmer Luckey Comes Back to Headsets With Microsoft’s Military Deal

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Key Takeaways

  • Anduril and Microsoft are enhancing the US Army's IVAS system with real-time data.
  • Palmer Luckey leads Anduril’s efforts to advance military technology.
  • The partnership will use Anduril’s Lattice platform to improve the IVAS system.

Palmer Luckey’s Anduril has partnered with Microsoft to enhance the US Army’s HoloLens-based IVAS system, integrating real-time data for improved battlefield performance.

Luckey, recognized for his $2 billion sale of Oculus VR, has returned to the headset industry. After co-founding defense firm Anduril Industries, he is now shifting some of his focus back to virtual reality.

On September 19th, Anduril announced a collaboration with Microsoft to enhance the U.S. Army’s Integrated Visual Augmentation System (IVAS), which processes data from various sensors, including those on the headset, weapon systems, and third-party devices.

Created by Microsoft in 2021 using HoloLens 2 technology, the IVAS headset integrates digital information with the user’s real-world view. The partnership will incorporate Anduril’s Lattice platform into this head-mounted display, leveraging Microsoft’s software expertise. Lattice, known for powering air defense systems and drones, will provide real-time information from drones, ground vehicles, and aerial defenses to soldiers using IVAS. This includes critical information such as drone movements, cyber warfare threats, and alerts for drones approaching from beyond visual range.

Anduril and IVAS System: What We Know So Far

Palmer Luckey is leading this strategic initiative, which he has prioritized for some time. He co-founded Anduril in 2017 following the sale of Oculus to Facebook, focusing on enhancing US and allied military capabilities.

Anduril has seen significant success recently, securing a US military contract to design an autonomous fighter aircraft and raising additional funding last month, boosting its valuation to $14 billion.

Microsoft launched HoloLens in 2015 to bring mixed reality to tasks like patient assessment and product design, but both it and its 2019 successor had limited adoption. Initially seen as a success, the IVAS system faced challenges, with a 2022 US Army report citing nausea and headaches among early users, despite its mission effectiveness. Microsoft has since announced significant improvements to IVAS, with further refinements planned based on testing in early 2025. The collaboration with Anduril has the potential to significantly enhance its usefulness.