The image understanding architecture (IUA) effort is now entering a new phase. The second generation IUA prototypes are nearing completion and our experience with the hardware, extensive software simulations, and additional research are guiding the development of a new generation of the IUA. Furthermore, the primary contractors have been selected for a technology reinvestment project (TRP) award to develop a commercial, off-the-shelf implementation of the new IUA for dual-use embedded applications. Thus, the IUA effort is in the process of making the transition from a research and development project to being a commercially available vision accelerator. IUA development is currently taking place at three sites (Hughes Research Laboratories in Malibu, Calif., Amerinex Artificial Intelligence Inc., and the University of Massachusetts at Amherst). This TRP consortium plans to form a new company to take over all aspects of IUA development and production. This article summarizes the previous efforts, describes the current status of the effort, expands briefly upon some of the basic research that is supporting the next generation IUA, and concludes with a section describing the efforts that will be undertaken in developing the next generation.