Anduril, a defense tech start-up co-founded by Palmer Luckey, has taken over the development and production of Microsoft 's headset program for the US Army. The $22 billion deal is still pending approval from the US Department of Defense.

Palmer Luckey-founded defense tech startup Anduril will take over the development and production of Microsoft's mixed-reality headset program for the U.S. Army, the companies said on Tuesday.

Through this partnership agreement, and pending Department of Defense approval, Anduril will assume oversight of production, future development of hardware and software, and delivery timelines. This agreement also establishes Microsoft Azure as Anduril’s preferred hyperscale cloud for all workloads related to IVAS and Anduril AI technologies.