Microsoft Corp.âs multibillion-dollar deal to build customized versions of its HoloLens goggles for the U.S. Army is moving forward, one year after the Senate considered freezing half the contract.
The deal, initially unveiled three years ago, is now worth as much as $21.9 billion over 10 years, according to Microsoft. The agreement runs for an initial five years, with an option to add another five years. The software maker will manufacture the augmented-reality devices in the U.S. The Army announced the contract Wednesday on its website.
Microsoft shares jumped almost 3% to $238.29 after the news.
The program, known as the Integrated Visual Augmentation System, or IVAS, aims to develop a âheads-up displayâ for U.S. ground forces, similar to those fighter pilots use in the cockpit. The system would let commanders project information onto a visor in front of a soldierâs face, and would include other features such as night vision. In October 2018, the U.S. Army awarded Microsoft a $480 million contract to adapt its HoloLens AR headset for the program.