U.S. Army Contracts Microsoft to Supply Reality Headsets Worth $21.9 Billion 

Microsoft said on Wednesday that it won a deal to sell augmented reality headsets for the US military based on its HoloLens product and with support from Azure cloud computing services.

A Microsoft spokesman told Reuters the contract could be worth $ 21.88 billion over ten years.

Microsoft has, over the past two years, worked with the military in the prototyping phase of the Integrated Visual Aid System (IVAS).

[caption id="attachment_226983" align="aligncenter" width="972"] Soldiers trying on augmented reality headsets by Microsoft. Source: Microsoft[/caption]

Alex Kipman, a Microsoft Technical Fellow said the headphones are designed to provide "better condition awareness, and enable information sharing and decision making in a variety of scenarios."

Microsoft was also on track to win a $10 billion JEDI cloud computing contract with the Pentagon, but the contract is still in dispute in a lawsuit brought by Amazon.