US Army Won’t Let Go of Mixed Reality Despite Microsoft HoloLens Cutback

While Microsoft shifts away from its augmented reality hardware, the U.S. Army’s plans for mixed reality headsets remain active.

As Microsoft is dialing back its efforts on HoloLens and mixed reality, the U.S. Army appears unfazed and is set to continue trials of the IVAS headset next year. The Army has made clear its commitment to testing the latest version of the device, despite Microsoft pulling out of HoloLens 2 production. The decision signals a shift in priorities at the tech giant, which is now putting more of its resources into artificial intelligence (AI).

The IVAS system is based on the HoloLens, and while Microsoft is moving on, the military is doubling down on their mixed reality project. IVAS 1.2, the updated version of the device, will be field-tested next year to see if it can deliver the performance the Army needs in combat situations. One year ago, the Army already extended the ongoing Microsoft partnership, allocating more funds to it.

The partnership between Microsoft and the army is an extension of an initial deal agreed back in 2018. When the initial deal was signed in November 2018, Microsoft’s own employees criticized the agreement. There were concerns regarding how HoloLens would be used to train soldiers and eventually lead to deaths.

Microsoft’s Quiet Retreat from Mixed Reality

HoloLens 2 was once expected to be Microsoft’s breakout hit in the AR/MR space, but the reality didn’t match the hype. Over time, Microsoft has thrown billions into the project, only to see sales struggle and internal leadership issues emerge. With mounting losses, the company made the call to end HoloLens 2 production, redirecting its focus to AI and cloud computing.

Microsoft’s co-founder of the HoloLens, Alex Kipman, also left the company after misconduct allegations, leaving the HoloLens team in disarray. The device itself sold poorly, shifting between 40,000 and 60,000 units—a far cry from the expectations.

IVAS: Army’s Mixed Reality Vision Stays Intact

Even as Microsoft scales back, the Army is still pressing on with IVAS testing. The Army is confident it can overcome the headset’s earlier issues, which included problems like dizziness and discomfort among users. IVAS 1.2 promises to address those with new features, such as better low-light performance and a redesign to make the goggles less bulky.

In 2024, soldiers from the 101st Airborne Division stationed at Fort Campbell, Kentucky, will put the device through its paces. The Army hopes this will confirm the system’s combat readiness.

Collaboration with Anduril: IVAS Program Gets New Support

With Microsoft cutting back on its involvement, the Army has turned to other partners. Anduril, a defense contractor led by Oculus VR creator Palmer Luckey, is stepping in to assist with the IVAS project. Anduril has already integrated its Lattice software into the system, ensuring that the Army can continue moving forward even as Microsoft shifts gears.

By spring, the Army expects to carry out the largest test of IVAS yet, with a battalion from the 4th Infantry Division at Fort Carson, Colorado, using the device during field exercises.

Army’s $22 Billion Bet on AR

Since 2018, the U.S. Army has been working closely with Microsoft to develop the IVAS under a contract worth up to $22 billion. The idea is to give soldiers an edge by combining thermal imaging, night vision, and data overlays in one device. While IVAS has had a bumpy road, the Army believes it’s still worth the investment.

If the IVAS 1.2 passes these next rounds of testing, it could move closer to full-scale production, potentially making mixed reality a core part of military operations.

Will AI Eclipse MR/AR?

With Microsoft stepping away from MR/AR, it’s clear the company is placing its bets elsewhere. The tech giant is funneling billions into AI development and data centers, hoping to lead the charge in the AI boom. Reports indicate Microsoft plans to secure nearly 2 million AI chips by 2024, a clear indication of where its priorities now lie.

For the Army, though, augmented reality remains an active focus. While Microsoft’s attention has shifted, the U.S. military seems determined to push forward with IVAS, regardless of where the tech industry goes next.

Last Updated on November 7, 2024 2:29 pm CET

Markus Kasanmascheff
Markus Kasanmascheff
Markus has been covering the tech industry for more than 15 years. He is holding a Master´s degree in International Economics and is the founder and managing editor of Winbuzzer.com.

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