Microsoft CEO Defends Pentagon Contract Following Employee Outcry

Microsoft CEO Satya Nadella is defending the company's $479 million contract with the Pentagon to supply augmented reality headsets to the U.S. military. '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 told CNN Business at Mobile World Congress. 'We were very transparent about that decision and we'll continue to have that dialogue [with employees],' he added during the exclusive interview. From the report: Microsoft was awarded the contract to supply 'Integrated Visual Augmentation System' prototypes to the U.S. military in November. The company could eventually deliver over 100,000 headsets under the contract. Microsoft's HoloLens augmented reality technology allows users to see the world around them, but with virtual graphics overlaid. The Israeli military, which has taken delivery of some HoloLens headsets, says the technology can be used to help commanders visualize the battlefield and field medics to consult doctors. According to procurement documents, the U.S. military is seeking a single platform that provides its forces with 'increased lethality, mobility and situational awareness' in combat. Microsoft employees have recently circulated a letter addressed to Nadella and Brad Smith, the company's president and chief legal officer, arguing that the company should not supply its HoloLens technology to the U.S. military. 'It's not about taking arbitrary action by a single company, it's not about 50 people or 100 people or even 100,000 people in a company,' he said. 'It's really about being a responsible corporate citizen in a democracy.'

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