Shield AI raises USD2 billion, acquires Aechelon Technology

Shield AI X-BAT concept for an unmanned autonomous VTOL strike jet. Some of its USD2 billion Series G funding raise will go towards the development of the system. (Shield AI)

Shield AI has announced a USD2 billion Series G funding raise that includes financing for the acquisition of defence software company Aechelon Technology.

The raise, led by Advent International and co-led by the Strategic Investment Group of JPMorganChase's Security and Resiliency Initiative, includes “USD1.5 billion at a USD12.7 billion post-money valuation and USD500 million in fixed-return preferred equity financing”, according to a company statement on 26 March.

“Funds managed by Blackstone are investing USD500 million of preferred equity financing, as well as committing an additional USD250 million delayed draw facility to support future growth,” according to the statement.

The raise is intended to help Shield AI position itself at the front of “a shift toward software-defined defence, where AI [artificial intelligence] pilots and next generation systems are trained in simulation and improved through operational data”, a Shield AI spokesperson told Janes on 26 March.

“Training and validating autonomy at the level required for real-world use takes massive computing, high-fidelity simulation, and sustained deployment. This capital lets us do all three in parallel versus sequentially,” the spokesperson added.

The spokesperson declined to provide the value of the acquisition, but explained that the move is intended to bring “simulation and deployed autonomy under one company to accelerate how AI systems are trained and deployed”.

Aechelon acquisition