Shield AI Raises $2B at $12.7B Valuation

San Diego-based defense technology company Shield AI has raised $2 billion in a late-stage funding round, achieving a post-money valuation of $12.7 billion. The financing, announced this week, includes a $1.5 billion Series G round led by private equity firm Advent International and co-led by JPMorgan Chase's Security and Resiliency Initiative, along with $500 million in preferred equity from funds managed by Blackstone. Blackstone also committed an additional $250 million in a delayed-draw facility. The capital will support the company's expansion in artificial intelligence-driven autonomous systems and fund its acquisition of Aechelon Technology, a provider of flight simulation software.

Shield AI develops hardware and software for military applications, focusing on autonomous operations in challenging environments. Its flagship product, the Hivemind AI platform, enables drones and aircraft to navigate without GPS or continuous human input, using onboard sensors and algorithms for decision-making. Key offerings include the V-BAT drone, which combines vertical takeoff with fixed-wing flight for reconnaissance missions, and the larger X-BAT, a stealthy vertical takeoff and...