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Shield AI Raises $2 Billion at $12.7 Billion Valuation to Scale Autonomous Flight

The investment reflects rising defense demand for autonomous aircraft alongside advanced training tools.

Shield AI's new combat drone, X-BAT, is expected to do its first test flight by the end of this year.
A Shield AI signage at the Singapore Airshow at Changi Exhibition Centre in Singapore February 3, 2026. REUTERS/Caroline Chia
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Overview

  • Shield AI, which announced the financing Thursday, closed a $1.5 billion Series G led by Advent and co-led by a JPMorgan Chase investment group plus $500 million in Blackstone preferred shares and a $250 million delayed-draw facility.
  • Part of the cash will fund the planned purchase of Aechelon Technology from Sagewind Capital, a simulation firm that feeds the U.S. military’s Joint Simulation Environment where aircraft and AI systems train against realistic threats.
  • CEO Gary Steele said Aechelon will speed work on Hivemind, the company’s AI pilot that flies without GPS or constant comms using onboard sensors and has been tested on F-16s and in the Air Force’s Collaborative Combat Aircraft effort.
  • Shield AI told Fortune it expects at least $540 million in 2026 revenue with roughly 80% growth, and it said the final close of the round depends on regulatory approval of the Aechelon deal with a reassessment if it is blocked.
  • The new valuation more than doubles last March’s $5.3 billion mark, as governments buy more autonomous systems and as the Air Force favors multiple suppliers, with rivals including Anduril, AeroVironment, and Skydio.