Defense tech firm Shield AI raises $1.5 billion at a $12.7 billion valuation

Shield AI, a San Diego-based defense technology company specializing in AI-powered drones and autonomous systems, has secured a $1.5 billion Series G funding round at a $12.7 billion post-money valuation, part of a larger $2.25 billion capital package that includes $500 million in preferred equity from Blackstone. The round, led by Advent International and co-led by JPMorganChase’s Security and Resiliency Initiative, reflects surging investor demand for defense AI amid global conflicts driving governments to modernize military capabilities. Proceeds will accelerate development of Shield AI’s V-BAT autonomous aircraft and Hivemind autonomy stack while funding the planned acquisition of Aechelon Technology, a simulation software firm critical to the U.S. Air Force’s Joint Simulation Environment. With projected 2026 revenue exceeding $540 million and lifetime equity funding surpassing $3.6 billion, Shield AI has emerged as a major competitor to fellow defense-tech startup Anduril Industries.