Shield AI has successfully raised $US2 billion at a valuation of $US12.7 billion, more than doubling its valuation from the previous year. This funding round underscores the strong investor demand for both defence technology and artificial intelligence. The company develops AI-powered software for autonomous vehicles and hardware like drones, joining other firms modernising military capabilities.
A $US1.5 billion Series G funding round was co-led by Advent International and the Strategic Investment Group of JPMorgan Chase & Co’s Security and Resiliency Initiative. Additionally, funds managed by Blackstone are investing $US500 million in preferred equity financing. Shield AI plans to allocate a portion of the proceeds to acquire Aechelon Technology, a developer of tactical simulation software used by the military in the US and other countries to train pilots and test advanced aircraft and autonomous systems. Specific terms of the acquisition were not disclosed.
Shield AI creates AI-powered software to operate autonomous vehicles and hardware, such as drones. The San Diego-based start-up’s technology has garnered increasing interest and financial backing as governments worldwide increase their defence spending. Shield AI last raised $US240 million at a $US5.3 billion valuation in March 2023 and counts Andreessen Horowitz and defence contractor L3Harris Technologies among its backers.
