Makes sense for this particular product.
The rules of military procurement and *support* are very different from either enterprise or consumer spaces. And if MS is pivoting from AR to AI it is probsbly because they don't feel comfortable playing in two "blue sky" projects simultaneously. Especially with generative software's much bigger margins that play to their Data Center strengths.
Anduril, btw, is neither a small startup nor an old-school defense player but rather an up and comer that is disrupting the military market in ways similar to Tesla and SpaceX in their markets...
...and XBOX in gaming...
...by ignoring the "way its always been done" and bringing in silivalley ways of problem solving. To appreciate Anduril's approach, look up "BARACUDA MISSILES" a family of cheap but advanced missiles designed for quick high volume manufacturing. Hopefully their products won't be needed but if worse comes to worse, they will be in high demand.
One last thought: "dump" might not be the appropriate term for this deal.
It depends on what MS gets out of it, whether a significant lump sum, equity, royalties, or nothing. That the deal requires approval suggests MS is getting something more than just another big customer for AZURE so "hand-off" might be a better choice of words than the headline uses.
I suspect stockholders will be happy to see MS is not trying to be all things to all people, a generally fatal temptation for large conglomerates looking for growth.
Interesting development, considering the history of the contract.
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