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

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.

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.