The technology industry has experienced significant changes in recent years, with impressive advances in areas such as artificial intelligence, cloud computing, and augmented reality. In this context, Microsoft's HoloLens stood out as one of the most promising innovations, with the potential to transform various industries, from education to healthcare.
Moreover, Microsoft bet on integrating this HoloLens technology into the military through the IVAS project, an augmented reality visor designed to enhance soldiers' capabilities. However, despite the high expectations and the multimillion-dollar contract with the Pentagon, the HoloLens did not meet all the expectations, particularly in the defense field, where the technology faced a series of technical and ethical challenges.
In a surprising turn, Microsoft has decided to step away from the development of HoloLens for military purposes, leaving the future of the project in the hands of Palmer Luckey, the founder of Oculus Rift, through his defense company Anduril Industries. This change with HoloLens not only marks the end of Microsoft's active involvement in this segment but also opens a new chapter for Anduril, which has earned a space in military technology with innovative projects.
Luckey, known for his futuristic vision of integrating technology with defense, now takes the reins of a crucial project that could redefine the way the military interacts with augmented reality technology, such as HoloLens. Below, the ITD Consulting team presents an analysis of how this change with HoloLens came about, the details of the collaboration between Microsoft and Anduril, and what we can expect from the future of this technology in the military field.
The IVAS project: The vision of augmented reality for the U.S. Army
2018 marked a milestone in the collaboration between Microsoft and the United States Department of Defense. In that year, the company signed a multimillion-dollar contract with the Pentagon to develop a visual enhancement system based on its HoloLens.
The system, known as IVAS (Integrated Visual Augmentation System), was designed to improve soldiers' capabilities by integrating augmented reality technology from HoloLens. The core idea behind this project with the HoloLens was to provide soldiers with vital real-time information, such as maps, routes, and sensor data, overlaid in their field of view through the HoloLens visors.

This type of HoloLens technology, when combined with advanced features such as thermal vision and night vision, would improve decision-making on the battlefield. Furthermore, the IVAS + HoloLens project was not limited only to infantry.
Initial plans included the possibility of remotely controlling drones and helicopters with the HoloLens, which expanded the system's applications far beyond the limits of a simple augmented reality headset. This ambitious approach made it clear that Microsoft not only wanted to be part of the technological revolution in the military field, starting with the HoloLens, but also to lead the way soldiers would interact with the future warfare environment.
Internal criticism and controversy at Microsoft
Despite the magnitude of the contract and the promises offered by the IVAS + HoloLens system, not everything was smooth sailing for Microsoft. Over the years, the development of IVAS + HoloLens was subject to both internal and external criticism.
In 2019, a group of Microsoft employees expressed strong opposition to the contract with the Pentagon. In an internal letter, the employees argued that HoloLens technology should not be used for military purposes, as it would contribute to the "militarization of technology," an ethical stance that many within the company were unwilling to compromise.
Despite these criticisms, Microsoft did not cancel the agreement and continued with the development of the IVAS system for the HoloLens, defending the collaboration with the Pentagon as a way to contribute to the well-being and national security of the United States. Satya Nadella, Microsoft's CEO, defended the contract, arguing that the company would not withhold technology from democratic institutions that aim to protect the freedoms of society. This stance was seen by some as a pragmatic approach, while others felt the company had compromised its principles.
Development issues and the cancellation of HoloLens 3
As the IVAS project progressed, HoloLens technology faced a series of technical challenges. Although the early versions of the HoloLens were praised for their innovation, the subsequent versions failed to meet expectations.
In 2022, Microsoft canceled the development of HoloLens 3, and by the end of 2023, the production of HoloLens 2 was also halted. This represented a significant blow to Microsoft's strategy in the field of mixed reality, an area in which the company had invested considerable resources since its early efforts with HoloLens.
While impressive from a technological standpoint, the HoloLens presented usability and reliability issues. In the military context, the HoloLens caused physical discomfort such as nausea and headaches in some users. Despite efforts to address these issues, technical challenges persisted with the HoloLens, contributing to the decision to halt production and shift focus to other areas, such as artificial intelligence and cloud computing.
The role of Palmer Luckey and Anduril Industries
The most significant change in this context has been the transfer of responsibility for the development of IVAS to Palmer Luckey, the founder of Oculus Rift and current CEO of Anduril Industries. Anduril is an emerging company in the defense field, known for its innovation in developing technology for surveillance, intelligence, and drone control.
Luckey, who sold Oculus to Facebook (now Meta) in 2014, has maintained a controversial and futuristic stance regarding the integration of technology for military purposes. Through Anduril, Luckey has proposed creating a more automated and technologically advanced military, earning both supporters and detractors.

Microsoft and Anduril signed a collaboration agreement to continue the IVAS project, with Anduril taking control of the hardware and software production and development, while Microsoft would continue supplying cloud infrastructure through Azure. This collaboration allows both companies to leverage their strengths: Anduril in the defense sector and Microsoft in artificial intelligence and cloud computing.
Anduril's technology and collaboration with Microsoft
Anduril Industries has made a name for itself in the development of advanced technological solutions for defense. Its focus on creating autonomous systems, such as the Lattice software used for drone control and intelligence gathering, positions it as an ideal partner for the development of cutting-edge technologies like IVAS.
The integration of Lattice into the IVAS HoloLens headsets could further enhance soldiers' ability to obtain real-time information and make quick decisions on the battlefield. On the other hand, Microsoft, through its Azure platform, has proven to be a key player in the cloud and artificial intelligence space.
Azure will provide the necessary infrastructure to process large volumes of data in real time and support AI-based applications that will be used in the IVAS + HoloLens headsets. This includes everything from sensor data analysis to image and video processing, all optimized for use in military scenarios with the HoloLens.
The future of the IVAS project
Although Anduril assumes oversight of the production and development of the IVAS system, Microsoft is not completely stepping away from the project. The company remains committed to supplying artificial intelligence and cloud computing services, reflecting its desire to stay involved in the defense sector, even though it is no longer in charge of direct hardware development, like the HoloLens.
The future of the IVAS project is tied to the success of the testing phase and meeting the deadlines set by the Department of Defense. Currently, the project is in the testing phase, and if it passes the scheduled evaluations, it could receive approval for mass production.
The initial contract with the Pentagon calls for the purchase of up to 121,000 units of the IVAS + HoloLens headsets over a 10-year period. However, the technical complexity and reliability issues in previous tests suggest that the path to mass production could be long and filled with obstacles.
The ethical implications of the militarization of technology
Microsoft's decision to step away from the development of HoloLens for military use and hand it over to Anduril raises a series of ethical questions about the militarization of technology. While Anduril and Luckey have a futuristic vision of how technology can enhance human capabilities on the battlefield, many critics are concerned about the impact this could have on society.
The integration of artificial intelligence, autonomous drones, and advanced surveillance systems into military environments opens the door to a new kind of warfare, one where decisions are increasingly made by machines and algorithms instead of humans. The debate about whether tech companies should participate in the development of military technologies is not new.
Companies like Google and Amazon have also been involved in similar controversies, facing both internal and external pressures about whether they should participate in projects with military applications. In Microsoft's case, the ethical dilemma has been amplified by its commitment to the IVAS contract, which has generated resistance within the company itself.
The legacy of HoloLens and mixed reality
The cancellation of HoloLens 3 and the end of HoloLens 2 production mark the close of an important chapter for Microsoft in the world of mixed reality. Despite being pioneering technology, the HoloLens did not achieve the mass adoption expected, neither in the business world nor in the military sector.
However, HoloLens' augmented reality technology still has a promising future, and Microsoft has not completely abandoned this area. Instead of focusing on specific devices like the HoloLens, the company has redirected its efforts towards the development of cloud-based applications and platforms, artificial intelligence, and spatial computing.
Meanwhile, Anduril is taking the reins of the future of augmented reality in the military field, with the intention of taking the IVAS project to new heights. Luckey and his company's ambition to transform the way soldiers interact with technology on the battlefield could change the nature of armed conflicts in the future.

The transition of the development of Microsoft's military HoloLens to Anduril Industries under the leadership of Palmer Luckey marks a significant milestone in the evolution of both technology and modern defense. Microsoft, which initially committed to providing an innovative solution with the HoloLens to enhance the operational capabilities of the U.S. military, has decided to step back in this area after facing various technical and ethical challenges.
Meanwhile, Anduril, led by Luckey, a key figure in the virtual reality industry, takes the reins of this project with the promise of continuing the development of IVAS and possibly taking it to new heights. Anduril's involvement in the defense sector is not coincidental, as the company has specialized in creating advanced technological solutions with military applications, and its innovative approach could represent a key evolution in the modernization of the armed forces.
This shift also highlights an essential aspect of military technology: the need for constant adaptation and the resolution of complex ethical dilemmas. The IVAS + HoloLens project, while initially promising, has been surrounded by controversy, particularly due to internal resistance within Microsoft regarding the use of the technology in warfare scenarios. Most Microsoft employees expressed their discontent over what they considered the militarization of the HoloLens, a tool originally designed to enhance productivity and human knowledge.
Despite the criticism, Microsoft defended its position, arguing that the use of HoloLens technology in defense should not be seen as a renouncement of democratic values, but rather as a means of protecting fundamental freedoms. However, the shift to Anduril reflects a departure from these internal tensions and opens a new chapter where technology is presented as a strategic resource in a highly competitive military context.
As augmented and mixed reality technologies advance, it is crucial to reflect on the role they will play in transforming military operations. The use of systems like IVAS + HoloLens could radically change the way soldiers interact with the battlefield, providing additional layers of real-time information, from maps to thermal vision.
While these innovations can improve safety and efficiency on the ground, they also raise questions about the ethics of "human enhancement" in a warfare environment. As technological capabilities advance, the risk of dependence on automated systems and the devaluation of human decision-making could become a central concern.
A careful balance is needed between technological progress and ethical responsibility, especially when it comes to its application in war. The future of military technology depends not only on the capabilities of machines but on how humans choose to integrate them into strategic processes and how it is ensured that these tools are not used for destructive purposes that compromise morality and humanity.
If you want to learn more about how the world we live in is evolving, both in the civilian and military sectors, with the use of technologies like the HoloLens, feel free to write to us at [email protected]. We have a dedicated team of technology experts to guide you and keep you at the forefront.