Defense startup Shield AI lands $12.7B valuation, up 140%, after U.S. Air Force deal

Shield AI, a pioneering developer of autonomous military aircraft, has successfully secured $1.5 billion in Series G funding, propelling its valuation to an impressive $12.7 billion. This announcement came on Tuesday, marking a significant increase of 140% since its last funding round. The latest investment round was spearheaded by Advent International, a private equity firm dedicated to enhancing defense technology, alongside a group from JPMorgan Chase. Additionally, Shield AI has sold $500 million in preferred shares to funds managed by Blackstone and has arranged a $250 million loan that remains available for future use. This influx of capital is set to support Shield AI's acquisition of Aechelon Technology, a company specializing in flight simulation technology essential for training U.S. military pilots, although the details of this acquisition have not been disclosed. This remarkable funding round follows a previous raise of $240 million in March 2025, which valued the company at $5.3 billion. The recent surge in valuation can be attributed to Shield AI's Hivemind autonomy software, which was chosen in February as part of the U.S. Air Force's Collaborative Combat Aircraft drone prototype program. Interestingly, Shield AI's software is set to collaborate with competitor Anduril, which is developing its own autonomous fighter jet, named 'Fury'. The Air Force's decision to engage multiple vendors for its next-generation drone fleet indicates a strategic approach to avoid reliance on a single supplier. Anduril, which has recently raised $2.5 billion at a staggering $30.5 billion valuation, appears unfazed by this partnership, as it seeks to raise an additional $8 billion, aiming for a valuation of $60 billion. Other notable investors in Shield's Series G round include Snowpoint Ventures, InnovationX, Riot Ventures, Disruptive, and Apandion.