Microsoft Corp. won a deal to supply the U.S. Army with augmented reality headsets for as much as $21.9 billion, according to Reuters.

  • The contract could be worth up to $21.88 billion over 10 years for the headsets based on Microsoft’s HoloLens product and backed by Azure cloud computing services.
  • The headsets will be manufactured in the United States, where Microsoft has worked with the Army on the prototyping of the Integrated Visual Augmentation System (IVAS) which is now in the production phase.
  • Microsoft Technical Fellow Alex Kipman said the headsets will provide “enhanced situational awareness, enabling information sharing and decision-making in a variety of scenarios.”
  • The company is also in line to win a $10-billion JEDU cloud computing contract with the Pentagon, but the contract is disputed by Amazon.com Inc. Officials earlier said the contract may be scrapped if the dispute lingers in courts.