Palmer Luckey’s vision for the future of mixed reality

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Written By AiNEWS2025

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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. 

Luckey is increasingly convinced that the military, not consumers, will see the value of mixed-reality hardware first: “You’re going to see an AR headset on every soldier, long before you see it on every civilian,” he says. In the consumer world, any headset company is competing with the ubiquity and ease of the smartphone, but he sees entirely different trade-offs in defense. Read the interview here

The use of AI for military purposes is controversial. Back in 2018, Google pulled out of the Pentagon’s Project Maven, an attempt to build image recognition systems to improve drone strikes, following staff walkouts over the ethics of the technology. (Google has since returned to offering services for the defense sector.) There has been a long-standing campaign to ban autonomous weapons, also known as “killer robots,” which powerful militaries such as the US have refused to agree to.  

But the voices that boom even louder belong to an influential faction in Silicon Valley, such as Google’s former CEO Eric Schmidt, who has called for the military to adopt and invest more in AI to get an edge over adversaries. Militaries all over the world have been very receptive to this message.

That’s good news for the tech sector. Military contracts are long and lucrative, for a start. Most recently, the Pentagon purchased services from Microsoft and OpenAI to do search, natural-language processing, machine learning, and data processing, reports The Intercept. In the interview with James, Palmer Luckey says the military is a perfect testing ground for new technologies. Soldiers do as they are told and aren’t as picky as consumers, he explains. They’re also less price-sensitive: Militaries don’t mind spending a premium to get the latest version of a technology.

But there are serious dangers in adopting powerful technologies prematurely in such high-risk areas. Foundation models pose serious national security and privacy threats by, for example, leaking sensitive information, argue researchers at the AI Now Institute and Meredith Whittaker, president of the communication privacy organization Signal, in a new paper. Whittaker, who was a core organizer of the Project Maven protests, has said that the push to militarize AI is really more about enriching tech companies than improving military operations. 

Despite calls for stricter rules around transparency, we are unlikely to see governments restrict their defense sectors in any meaningful way beyond voluntary ethical commitments. We are in the age of AI experimentation, and militaries are playing with the highest stakes of all. And because of the military’s secretive nature, tech companies can experiment with the technology without the need for transparency or even much accountability. That suits Silicon Valley just fine. 


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