# Shield AI is raising $2 billion in a new funding round at a $12.7 billion valuation.

*aerospace, genai · news · 2026-03-26 · The Economic Times*

## Key points

- Shield AI is raising $2 billion at a $12.7 billion valuation in a Series G round.
- Blackstone-managed funds are investing $500 million with an additional $250 million delayed draw facility.
- Shield AI plans to acquire simulation software maker Aechelon Technology to enhance its capabilities.
- Shield AI's Hivemind software has been tested on U.S. Air Force's Collaborative Combat Aircraft and F-16s.

Synopsis Defense technology startup Shield AI is securing $2 billion in funding at a $12.7 billion valuation. This significant investment will fuel the expansion of its artificial intelligence-powered software. The company's technology enables drones and aircraft to operate in challenging environments. Shield AI also plans to acquire a simulation software maker to enhance its capabilities. Shield AI is raising $2 billion in a new funding round at a $12.7 billion valuation, as the defense technology startup looks to expand its artificial intelligence-powered software amid growing use of autonomous tools during conflicts. The startup said on Thursday the Series G round was led ‌by Advent ⁠International and ⁠co-led by JPMorganChase's Strategic Investment Group, with participation from existing investors ​including Snowpoint Ventures and Riot Ventures. Shield AI said Blackstone-managed funds are investing $500 million in preferred equity as part of the financing, while also committing an additional $250 million delayed draw facility that could bring its total investment to $750 million. The use ⁠of autonomous ‌technologies in the U.S. and Israel's coordinated ​strikes against ​Iran and Russia's invasion of Ukraine has boosted ⁠demand for tools made by companies that specialize ​in autonomous flight software. Shield AI's Hivemind software allows drones and aircraft to operate in GPS-denied environments and has been tested on several platforms, including the F-16 fighter jets and the U.S. Air Force's uncrewed weapon system called Collaborative Combat Aircraft. Shield AI plans to use a portion ‌of the funds to buy simulation software maker Aechelon Technology from private equity firm Sagewind Capital, it said, without disclosing financial terms ⁠of the deal. "The acquisition of Aechelon will accelerate the work we are doing with Hivemind, particularly in simulation like the Department ​of War's JSE (Joint Simulation Environment)," Shield AI CEO Gary Steele said in a statement. The JSE is a high-fidelity virtual combat range used by the U.S. military to test aircraft, autonomous systems and tactics against realistic battlefield threats. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Subscribe Now

**Companies:** Shield AI, Aechelon Technology
**Countries:** United States, Israel, Iran, Russia, Ukraine

[Read the full story on The Economic Times](https://economictimes.indiatimes.com/tech/funding/defense-technology-startup-shield-ai-valued-at-12-7-billion-in-latest-funding-round/articleshow/129827205.cms)

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