After the program for the promising MBT-70 was closed due to high costs, the U.S. decided to create a simplified version of it. Despite reduced expenses, the designers planned to fit out the T803 with many modern developments: day and night sights, a laser rangefinder, a commander's all-round observation optical device, a VHF radio slot antenna, and other equipment. However, inflation made the project even more expensive, and the decision was taken to change the configuration, leading to the creation of the XM803, which was later abandoned in favor of the XM1.