Shield AI has successfully raised $US2 billion ($2.9 billion) in funding, achieving a valuation of $US12.7 billion. This more than doubles its valuation from the previous year, highlighting strong investor interest in defence technology and artificial intelligence. Advent International and JPMorgan Chase & Co’s Security and Resiliency Initiative co-led the $US1.5 billion Series G funding round. Funds managed by Blackstone contributed an additional $US500 million through preferred equity financing; the valuation includes the capital raised.
Shield AI intends to allocate a portion of the funds to acquire Aechelon Technology, a company specialising in tactical simulation software. Aechelon’s software enables militaries in the US and other nations to train pilots and evaluate advanced aircraft and autonomous systems. The specific terms of the acquisition remain undisclosed. Shield AI develops AI-powered software designed to operate autonomous vehicles and hardware, including drones. This positions them alongside companies such as Anduril Industries, which are focused on providing tools to modernise military capabilities.
The completed funding round was initially reported by The New York Times. Bloomberg News had previously reported on Shield AI’s discussions to raise funds at an approximate $US12 billion valuation. Shield AI previously secured $US240 million at a $US5.3 billion valuation in March 2023.
The San Diego-based startup’s backers include Andreessen Horowitz and defence contractor L3Harris Technologies. Bloomberg Beta, the venture capital arm of Bloomberg LP, is also listed as an investor.
