Security News > 2021 > March > Microsoft Wins $22 Billion Deal Making Headsets for US Army

Microsoft won a nearly $22 billion contract to supply U.S. Army combat troops with its augmented reality headsets.

Microsoft and the Army separately announced the deal Wednesday.

The Army first began testing Microsoft's system with a $480 million contract in 2018 and said the headsets could be used for both training and in actual battle.

The new contract will enable Microsoft to mass produce units for more than 120,000 soldiers in the Army Close Combat Force.

Microsoft said the contract will amount to up to $21.88 billion over the next decade, with a five-year base agreement that can be extended for another five years.

A group of Microsoft workers in 2019 petitioned the company to cancel its initial Army deal, arguing it would turn real-world battlefields into a video game.

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