Shield AI, a San Diego defence technology company that builds AI pilot software and drones, announced on 26 March 2026 that it was raising $1.5bn in Series G funding at a $12.7bn post-money valuation, together with $500m of fixed-return preferred equity, for a total of $2bn.
The Series G was led by Advent International and co-led by the Strategic Investment Group of JPMorganChase's Security and Resiliency Initiative. Existing investors Snowpoint Ventures, InnovationX, Riot Ventures, Disruptive and Apandion also took part. Funds managed by Blackstone are providing the preferred equity and committed a further $250m delayed-draw facility, which Reuters said could bring Blackstone's total investment to $750m.
Fortune reported that the valuation more than doubled from the $5.6bn at which investors had previously valued the company.
“Shield AI is a rare asset with the potential to deliver strong growth over the coming years.”David Mussafer, Chairman, Advent International
What Shield AI does
Founded in 2015, Shield AI makes Hivemind, autonomy software that flies aircraft without a human pilot, as well as the V-BAT and X-BAT aircraft. The company said Hivemind had piloted 26 classes of vehicle, including F-16 fighter jets, jet-powered drones, helicopters, drone boats and ground vehicles.
The US Air Force has selected Hivemind as a mission autonomy provider for its Collaborative Combat Aircraft programme, and the software is being flight-tested on the Anduril YFQ-44A. Fortune reported that the V-BAT surveillance drone has been used in operations in Ukraine and that the X-BAT combat drone is expected to make its first flight by the end of 2026.
Shield AI cofounder and president Brandon Tseng and chief financial officer Kingsley Afemikhe told Fortune the company expected revenue to grow by more than 80% in 2026, which Fortune calculated would mean at least $540m in revenue this year.
The Aechelon deal
Part of the money will fund Shield AI's planned acquisition of Aechelon Technology, a defence software company owned by Sagewind Capital that makes high-fidelity simulation, physics-based sensor models and synthetic reality tools. The US military and its allies use Aechelon's technology to train pilots and test aircraft before live flight, including in the Pentagon's Joint Simulation Environment. Financial terms were not disclosed.
Aechelon will continue to operate independently, and its co-founder and chief executive Nacho Sanz-Pastor will report to Shield AI chief executive Gary Steele. Steele said the deal would speed up Shield AI's simulation work and help develop its Hivemind Foundation Model for Defense. The deal still needs regulatory approval, and Fortune reported that the final close of the funding round depends on it. The money will also fund some phases of X-BAT development.
Who invested
Advent chairman David Mussafer will join Shield AI's board, and JPMorganChase's Todd Combs will become a board observer. Fortune described Advent and JPMorganChase as first-time investors in the company.
Tseng told Fortune that fundraising talks began in November and that investor interest reflected a view that the world had become less stable, with countries modernising their militaries.
Company website: shield.ai