Microsoft's billion-dollar Army program faces spending cut

Jun. 25, 2020 5:22 PM ETMicrosoft Corporation (MSFT)MSFTBy: Brandy Betz, SA News Editor18 Comments
  • The U.S. Senate Armed Services Committee proposes freezing half of the funding for an Army program involving Microsoft (NASDAQ:MSFT) headsets.
  • The Integrated Visual Augmentation System program wants to develop heads-up displays for ground forces, which would allow commanders to project information in a soldier's visor.
  • In 2018, the Army awarded Microsoft a $480M contract to adapt its HoloLens AR headsets for the program. The deal's value was increased to $641M this February.
  • The Army's current budget request includes $906M for IVAS in fiscal 2021 and more than $1B for 2022. Note that not all of that money goes to Microsoft.
  • The committee wants greater transparency into the program's cost and performance.
  • Microsoft primarily sells its $3,500 HoloLens headsets to corporate, industrial, and government customers.

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