Shield AI Raises $2 Billion, Valued at $12.7 Billion

Defense AI startup Shield AI has raised $2 billion in new financing at a $12.7 billion valuation, led by Advent International and JPMorganChase. The funds will scale Hivemind, its autonomous AI pilot software, and finance the acquisition of simulation firm Aechelon Technology, as investor appetite for autonomous defense systems reaches record levels.

Shield AI, the defense technology startup behind an autonomous AI pilot used in active combat, has raised $2 billion in new financing, more than doubling its valuation to $12.7 billion in roughly one year.

The raise was co-led by Advent International and JPMorganChase’s Security and Resiliency Initiative in a $1.5 billion Series G round, with Blackstone-managed funds contributing an additional $500 million in preferred equity financing. Blackstone also committed a $250 million delayed-draw facility, bringing its total potential investment to $750 million.

As part of the announcement, Shield AI said it is acquiring Aechelon Technology Inc., a defense software company that develops high-fidelity simulation, physics-based sensors and synthetic reality applications used by the U.S. military and its allies to train pilots and test advanced aircraft and autonomous systems.

Shield AI was valued at $5.3 billion as recently as March 2025. Before that, the company raised $200 million at a $2.7 billion valuation in October 2023. In roughly two and a half years, its valuation has grown nearly fivefold.

The company’s flagship product, Hivemind, is an autonomous AI pilot software platform designed to operate in disconnected, degraded, intermittent and low-bandwidth environments conditions where GPS and communications are routinely jammed or denied.

The Aechelon acquisition will accelerate work with Hivemind, particularly in simulation for the Defense Department’s Joint Simulation Environment. It will also help advance our Hivemind Foundation Model for Defense, which is trained in simulation and continuously refined through real-world operations.
Gary Steele, CEO, Shield AI

Hivemind software has piloted 26 classes of vehicles, including F-16s, jet-powered UAVs, helicopters, drone boats and ground vehicles. The U.S. Air Force recently selected Shield AI as a mission autonomy provider for Collaborative Combat Aircraft and is conducting a flight test campaign of Hivemind aboard the Anduril YFQ-44A.

Shield AI also unveiled the X-BAT in October 2025, a vertical takeoff-and-landing stealth fighter drone that requires no runway, can be deployed from ships, and is piloted entirely by Hivemind. Its first vertical takeoff flight is scheduled for this year, with operational deployment estimated for 2028.

Founded in 2015 by former Navy SEAL Brandon Tseng, along with Ryan Tseng and Andrew Reiter, Shield AI focuses on autonomy products for government customers. Its systems are in active use by U.S. and Ukrainian armed forces.

David Mussafer, chairman of Advent International, will join Shield AI’s board of directors. Todd Combs of JPMorganChase will join as a board observer.

Disclaimer: This reporting is based on publicly available reporting, including official press release from Shield AI. Nervnow has not independently verified the claims.

MORE ON AI STARTUPS & FUNDING
Harvey Raises $200M to Put Legal Work on Autopilot
Kluisz in Talks to Raise $25 Million as AI Data Center Demand Grows
NVIDIA, Accel, HCLTech in Talks to Back Sarvam AI at $1.5B
QCraft Raises $100 Million in Series D to Expand Physical AI Push
Notch Banks $30M Series A to Deploy AI Agents in Insurance, Finance