Microsoft has won a Pentagon contract to produce a military-version of HoloLens for the US Army. It will build more than 120,000 custom HoloLens units through a government contract reportedly worth over $21 billion, according to CNBC. 

Microsoft has been prototyping the augmented reality technology with the US Army since late 2018. Dubbed the Integrated Visual Augmentation System, the military-grade HoloLens can enhance the soldier’s vision through an array of sensors and AI-powered tech, which can even spot enemy targets and identify them. Other features include a head-up display, night vision, and thermal sensors.

In a Wednesday blog post, Microsoft said the HoloLens project with the US Army would begin moving from the prototyping stages “to production and rapid fielding.”

“The IVAS headset, based on HoloLens and augmented by Microsoft Azure cloud services, delivers a platform that will keep Soldiers safer and make them more effective,” it added. 

Microsoft didn't immediately respond to a request for comment. However, the government contract may generate internal protest within the company. In February 2019, a group of company employees circulated an open letter, calling on the tech giant to drop the initial HoloLens prototyping work with the US Army. “We did not sign up to develop weapons, and we demand a say in how our work is used," the letter read.

Nevertheless, Microsoft CEO Satya Nadella refused to cancel the work. "We made a principled decision that we're not going to withhold technology from institutions that we have elected in democracies to protect the freedoms we enjoy," he said at the time.  

In its own statement, the US Army said the HoloLens technology will help US soldiers “achieve overmatch against current and future adversaries.”

"The partnership between the Army and Microsoft illustrates areas that the Department of Defense and industry can work together towards achieving modernization priorities in the interest of national security," the statement added.