Shield AI Reaches $12.7B Valuation After Major U.S. Air Force Contract
Defense startup Shield AI raises $1.5 billion in Series G funding, pushing its valuation to $12.7 billion following a U.S. Air Force drone program selection. The company plans to use the capital to acquire flight simulation maker Aechelon Technology.
Defense startup Shield AI raises $1.5 billion in a Series G funding round led by Advent and a JPMorganChase investment group, reaching a post-money valuation of $12.7 billion. The company also sells $500 million in preferred shares to Blackstone and secures a $250 million credit facility. This massive influx of capital represents a 140% increase in valuation compared to its $5.3 billion valuation from March 2025.
The dramatic rise in value stems from Shield AI's recent selection by the U.S. Air Force for its Collaborative Combat Aircraft drone prototype program. Notably, the Air Force chooses Shield AI's Hivemind autonomy software to power competitor Anduril's "Fury" autonomous fighter jet. This decision highlights the military's strategy to avoid relying on a single vendor for the software stack of its next-generation drone fleet.
Shield AI uses this new funding to acquire Aechelon Technology, a company that produces flight simulation technology for training U.S. military pilots. Additional investors in the Series G round include Snowpoint Ventures, InnovationX, Riot Ventures, Disruptive, and Apandion. Meanwhile, competitor Anduril continues its own rapid growth, with reports suggesting the company is seeking an $8 billion raise at a $60 billion valuation.