Plus: why it's so hard to achieve AI sovereignty. At Davos this year Trump is dominating all the side conversations. There are lots of little jokes. The US president is due to speak here today, amid threats of seizing Greenland and fears that he's about to permanently fracture the NATO alliance. Read Mat's story to find out more . This subscriber-only story appeared first in The Debrief, Mat's weekly newsletter about the biggest stories in tech.

Microsoft's six-year-old program to make HoloLens headsets for the US Army could be getting some extra help. If the Department of Defense approves the deal, the company will expand its existing partnership with Anduril Industries, Palmer Luckey's defense startup, for the next stages of the Integrated Visual Augmentation System (IVAS) program. Microsoft, which spearheaded the program, would transition into supplying AI and cloud infrastructure. Meanwhile, Anduril would do pretty much everything else, including "oversight of production, future development of hardware and software and delivery timelines." Anduril makes a wide array of defense tech, including drone interceptors, sentry towers, comms jammers, drones and even an autonomous submarine. But given Luckey's background as the primary inventor of the Oculus Rift -- and, by extension, the modern consumer XR industry -- the IVAS program could perhaps be the defense tech startup's most natural fit.

OpenAI has partnered with defense startup Anduril Industries to develop AI for the Pentagon. The companies said on Wednesday that they'll combine OpenAI's models, including GPT-4o and OpenAI o1, with Anduril's systems and software to improve the US military's defenses against unpiloted aerial attacks. The deal comes less than a year after OpenAI softened its stance on using its models for military purposes. Although the ChatGPT maker's policies still prohibit its models from developing or using weapons, it deleted a line in January that explicitly banned integrating its tech into "military and warfare" use. The company said at the time it was already working with DARPA on cybersecurity tools.

Silicon Valley players are poised to benefit. One of them is Palmer Luckey, the founder of the virtual-reality headset company Oculus, which he sold to Facebook for 2 billion. After Luckey's highly public ousting from Meta, he founded Anduril, which focuses on drones, cruise missiles, and other AI-enhanced technologies for the US Department of Defense. The company is now valued at 14 billion. My colleague James O'Donnell interviewed Luckey about his new pet project: headsets for the military.

A new tool could improve the one-on-one tutoring sometimes used to supplement class instruction in these schools, by letting tutors tap into more experienced teachers' expertise during virtual sessions. It's been in chaos for the best part of five years, and the problems just keep piling up.

Palmer Luckey Is Bringing Anduril Smarts to Microsoft's Military Headset The founder of Oculus VR is returning to headsets--this time for the battlefield. When Palmer Luckey was hacking together virtual reality headsets at his startup Oculus VR in the mid-2010s, he would sometimes imagine a future in which US soldiers used the technology to sharpen their battlefield senses. That vision is now virtually a reality after a deal that will bring software from his defense startup, Anduril, to a US Army head-mounted display developed by Microsoft. "The idea is to enhance soldiers," Luckey tells WIRED over Zoom from his home in Newport Beach, California. "Their visual perception, audible perception--basically to give them all the vision that Superman has, and then some, and make them more lethal."

The Pentagon will look to develop new artificial intelligence-guided planes, offering two contracts that several private companies have been competing to obtain. The Collaborative Combat Aircraft (CCA) project is part of a 6 billion program that will add at least 1,000 new drones to the U.S. Air Force. These drones would deploy alongside human-piloted jets and provide cover for them, acting as escorts with full weapons capabilities that could also act as scouts or communications hubs, The Wall Street Journal reported. Boeing, Lockheed Martin, Northrop Grumman, General Atomics and Anduril Industries have all taken up the challenge. General Atomics supplied the Reaper and Predator drones the U.S. has deployed in numerous campaigns in the Middle East, and Anduril is a newcomer to the field, founded in 2017 by inventor Palmer Luckey, an entrepreneur who founded Oculus VR.

Oculus co-founder Palmer Luckey's startup Anduril has so far focused on above-ground drones and virtual border walls, but now it's ready to go below the waves. The company has bought Dive Technologies, a startup focusing on autonomous underwater vehicles (AUVs). Luckey's firm is already offering Dive's existing DIVE-LD AUV as an option. The customizable drone can handle not only military tasks like anti-submarine warfare and undersea combat zone awareness, but peaceful duties like mapping seabeds and oceanographic sensing. This could be as useful for NOAA and commercial ventures as it might be for the Navy, in other words.

Last year Anthony Levandowski pleaded guilty to one count of stealing materials from Google, where he was an engineer for its self-driving car efforts before leaving to found a startup that he sold to Uber. The judge said during his sentencing that his theft of documents and emails constituted the "biggest trade secret crime I have ever seen." Now, on the last day of Donald Trump's administration, Trump issued a series of pardons -- the Department of Justice has more information on how those work here -- and commutations that covered people who worked on his campaign like Steve Bannon and Elliott Broidy, as well as Levandowski. A press release from the White House noted tech billionaires Peter Thiel and Palmer Luckey were among those supporting a pardon for Levandowski, and it makes the claim that this engineer "paid a significant price for his actions and plans to devote his talents to advance the public good." It also noted that his plea covered only a single charge, omitting mention of the 33 charges he'd been indicted on.

It's no secret that Palmer Luckey's Anduril Industries has been developing a "virtual wall" to heighten national security -- he's been at it for the better part of three years. That work (for better or worse) has finally paid off. According to a new report from the Washington Post, the Trump administration awarded Anduril a lucrative five-year contract to erect hundreds of AI-powered surveillance towers along the U.S.-Mexico border by 2022. "These towers give agents in the field a significant leg up against the criminal networks that facilitate illegal cross-border activity," said Border Patrol Chief Rodney Scott in a statement released by U.S. Customs and Border Protection. Anduril's hardware almost looks like it belongs in orbit, rather than sitting amid desert scrub.