Meta set to develop XR equipment for the U.S. military… Partners with 'Anduril', Palmer Luckey's company who was dismissed 8 years ago

Source
Korea Economic Daily

Summary

  • Meta announced that it has signed a partnership with Anduril to enter the military XR device market.
  • Through this partnership, the two companies are jointly bidding for a U.S. Army contract worth up to $100 million, signaling efforts to diversify revenue streams.
  • Meta stated that it aims to reduce its dependence on SNS advertising revenue and seek new growth engines in the defense technology sector.
Palmer Luckey, founder of Anduril, and Mark Zuckerberg, CEO of Meta. Photo provided=Anduril
Palmer Luckey, founder of Anduril, and Mark Zuckerberg, CEO of Meta. Photo provided=Anduril

Meta is greatly expanding its cooperation with the United States Armed Forces. Following last year’s opening of its artificial intelligence (AI) models for military use, the company has now teamed up with Anduril, headed by Palmer Luckey—the founder it dismissed 8 years ago—to enter the military extended reality (XR) device market. Observers note that Meta, previously devoted to the general consumer market, is actively expanding into the defense sector in order to create new revenue streams.

On the 29th (local time), Meta announced it will form a partnership with U.S. defense technology startup Anduril to develop XR devices such as military headsets and goggles. Under this agreement, the two companies will jointly develop a device equipped with sensors—named “Eagle Eye”—to enhance soldiers’ auditory and visual capabilities, enabling them to detect drones flying from kilometers away or spot concealed targets. Mark Zuckerberg, CEO of Meta, stressed, “Eagle Eye technology will help the United States Armed Forces protect our interests at home and abroad,” and added, “Meta has focused on building AI and AR technology for the future computing platform for the past decade.”

The two companies have also jointly bid on a U.S. Army contract for VR hardware. The contract is reportedly worth up to $100 million (about ₩140 billion). Regardless of whether they win the Army contract, Meta and Anduril plan to continue developing these devices. The equipment will feature Meta’s AI models and Anduril’s autonomous driving software (SW).

Meta is recently accelerating its move into the defense sector. In November last year, Meta designated defense as a new area of business and made its AI models available for military use. Since the military is making massive investments in cutting-edge technology, the company determined that cooperation with the military is essential for technological advancement. Currently, more than 90% of Meta’s revenue comes from advertising on its SNS platform, so Meta views defense technology as essential for creating new sources of income.

The tech industry is also paying attention to the “bad blood” between CEO Zuckerberg and Anduril founder Luckey. Luckey founded Oculus VR, a virtual reality (VR) company acquired by Facebook (Meta’s predecessor) in 2014. He started Oculus VR in 2012 at age 19 and sold the company two years later in 2014 for $2.3 billion (about ₩3.15 trillion), going on to lead Facebook’s VR division and spearhead VR technology development. However, in 2016, it was revealed that he donated to a group opposed to then Democratic presidential candidate Hillary Clinton, and the following year CEO Zuckerberg dismissed him. It was only last year, ahead of the U.S. presidential election, that Meta officially apologized for firing Luckey in the past.

Silicon Valley = Youngchan Song, Correspondent 0full@hankyung.com

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Korea Economic Daily

hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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