After years of delays, hardware and software development for the IVAS project will shift to Anduril, with Microsoft continuing to supply cloud infrastructure.

Microsoft plans to quit developing augmented-reality headsets for the US Army and have Oculus founder Palmer Luckey's Anduril Industries take over the gig. The software giant’s AR-for-Army project is called the Integrated Visual Augmentation System (IVAS) and began in 2018 using hardware based on Microsoft's now-discontinued HoloLens headsets.

Should Anduril Industries founder Palmer Luckey have his way, the U.S. Army's effort to arm troops with futuristic, mixed-reality headsets will involve a consortium of companies pumping out "glasses that look a lot like the Oakleys you wear every day all the way up to things that look like an Iron Man helmet.