The first stage, supposedly to be completed by 2020, offers you a robot version of yourself, controlled by a brain-computer interface -- what experts often call the "RoboCop" phase. The second stage is set to go into effect within five years of the first; this is the money shot of immortality, as it looks to actually transfer your human consciousness into an artificially created representation of your former biological glory.
The third stage would give our new cyborg overlords the ability to emote, possibly gambling on the fact that they'll allow us to live once they know mercy. The final stage is the marriage of each individual facet, resulting in a holographic representation of our former selves, complete with emotions, memories, and (hopefully) empathy.
Making it awesome to robot-play video games in the future.
So, yes, this guy is using his millions to bring Avatar to life, where a race of 'roided-out Smurfs are remote-controlled via someone else's brain, and our lives are almost exactly like a bad grad student cultural studies research paper and/or the plot to Disney's Pocahantas. The movie Avatar ends with genocide, but let's hope we can control ourselves a little better in real life.
Itskov's 2045 initiative produced a nifty inspirational video, claiming the project will lead us into a new way of life, devoid of violence and prejudice (he somehow thinks war will become a thing of the past, rather than simply being far more awesome). Once we make the switch to non-physical forms of existence, we'll be able to pool our collective mind-power to achieve hippie-inspired ends, such as spiritual self-improvement. Hey, laugh all you want; the point is that the guy is spending his cash on this instead of, say, a giant hot tub in the shape of his own penis.
Which is understandable since the accident.