XReality Group wins US defence contract to supply training tech for $5.6M

XReality Group Limited (ASX:XRG) has revealed its Operator XR training software has been sold to a US government customer for the first time – none other than US defence.

It’s a big milestone for a company with offerings catered to that sort of customer – XRG noted on Wednesday it “presents opportunities for follow on work.”

Operator XR is what you’d imagine – a headset that allows for police and soldiers in training to immerse themselves, as best as possible, in lifelike hostile scenarios. Should it be a hit at the US Defence force, this could be a pivotal moment in the company’s ability to exploit the crossroads of those two markets.

Only in July, the company won a $0.8M deal from an Australian state government. Wednesday’s deal, at $5.6M, is significantly lager.

The delivery of the tech will take place at the same time it enters into an R&D program with a timeframe just short of two years alongside Defence contractor Acrolet Solutions LLC, DBA Endurance Group.

Management was succinct in underscoring the nature of this milestone for XRG.

“The strategic importance of this project cannot be understated, representing Operator XR’s first major engagement with the US Department of Defence,” CEO Wayne Jones said.

“Operator XR will be jointly developing a cutting edge capability that has the potential to expand into further global agencies as well as the many operational units within the US Defence Force.”

XRG last traded at 3.7cps.