Defense AI Startup Shield AI Raises $2B at $12.7B Valuation

San Diego: Shield AI has raised $2 billion in new funding at a $12.7 billion valuation. That marks a 140% jump from its $5.3 billion valuation just twelve months ago.

The raise has two parts. A $1.5 billion Series G led by Advent and a JPMorganChase investment group forms the core. Blackstone funds added $500 million in preferred shares. Shield AI also secured a $250 million credit facility to draw on as needed.

Also read: Overland AI Secures $100 Mn as Military Demand for Ground Autonomy Rises

One contract drove the valuation surge. In February, the US Air Force selected Shield AI’s Hivemind software for its Collaborative Combat Aircraft programme. Hivemind will power autonomous drone operations alongside Anduril‘s Fury fighter jet. The Air Force chose separate vendors deliberately avoiding single-vendor lock-in across aircraft and autonomy software.

Hivemind is Shield AI’s flagship product. It allows aircraft and drones to fly autonomously without GPS, communications links, or human remote control. The platform has seen deployment across multiple military programmes and now sits at the centre of the Air Force’s next-generation drone strategy.

Alongside the fundraise, Shield AI is acquiring Aechelon Technology. Aechelon builds flight simulation software that the US military uses to train pilots. The deal adds high-fidelity simulation to Shield AI’s existing stack which includes Hivemind Enterprise, EdgeOS, and its Forge autonomy factory. Terms remain undisclosed.

Other Series G participants include Snowpoint Ventures, InnovationX, Riot Ventures, Disruptive, and Apandion. Advent separately committed up to $1 billion for future defence tech investments.

Shield AI now ranks among the most valuable pure-play defence AI software companies globally. Only Anduril sits higher currently seeking up to $8 billion at a $60 billion valuation.