Shield AI announced it has raised $2 billion in a Series G financing round that values the company at $12.7 billion. The defense-focused technology startup said the latest round was led by Advent International and co-led by JPMorganChase’s Strategic Investment Group, with participation from existing backers including Snowpoint Ventures and Riot Ventures.
As part of the financing, Shield AI said funds managed by Blackstone are investing $500 million in preferred equity. Those funds also committed a $250 million delayed draw facility, which the company said could bring Blackstone’s total investment to $750 million if fully drawn.
The company said it will direct a portion of the new capital toward acquiring Aechelon Technology, a maker of simulation software currently owned by private equity firm Sagewind Capital. Shield AI did not disclose the financial terms of the planned acquisition.
Product and operational footprint
Shield AI develops Hivemind, an artificial intelligence-driven software suite that enables drones and aircraft to operate in environments where GPS is unavailable or denied. The startup noted that Hivemind has been tested on multiple platforms, among them F-16 fighter jets and the U.S. Air Force’s uncrewed weapon system known as the Collaborative Combat Aircraft.
Company leadership framed the acquisition of Aechelon as a way to accelerate work on Hivemind, particularly in simulation environments used by the U.S. military. Shield AI quoted CEO Gary Steele saying the Aechelon deal will help advance simulation work that aligns with the Department of War’s Joint Simulation Environment, or JSE.
The JSE is described by the company as a high-fidelity virtual combat range used by U.S. military services for testing aircraft, autonomous systems and tactics against realistic battlefield threats.
Context cited by the company
Shield AI pointed to rising use of autonomous technologies in recent military operations as a driver of increased demand for its products. The company cited the role of autonomous tools in coordinated strikes and in responses to conflicts as a factor boosting interest in autonomous flight software.
Funding participants and next steps
In addition to Advent International and JPMorganChase’s Strategic Investment Group, existing investors such as Snowpoint Ventures and Riot Ventures took part in the Series G round. Shield AI said it will apply part of the proceeds to the planned Aechelon acquisition, but did not reveal the purchase price or other terms.
Note: The company provided details on investor commitments and strategic plans while leaving certain financial specifics of the acquisition undisclosed.