Microsoft $22 Billion U.S. Army Deal for HoloLens Advances

  • Microsoft will manufacture the customized goggles in the U.S.
  • Contract was initially announced in 2018 at $480 million
A Microsoft HoloLens 2 headset at the MWC Barcelona in 2019.Photographer: Angel Garcia/Bloomberg
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Microsoft Corp.’s 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.