Defense startup Shield AI lands $12.7B valuation, up 140%, after U.S. Air Force deal

Shield AI, a defense startup specializing in autonomous military aircraft, has secured $1.5 billion in Series G funding, boosting its valuation to $12.7 billion—a 140% increase from its $5.3 billion valuation in March 2025. The funding round involved investors such as JPMorgan Chase and included a $500 million preferred share sale to Blackstone-managed funds, alongside a $250 million loan facility. This capital infusion is partly being used to acquire Aechelon Technology, a company that develops flight simulation technology for training U.S. military pilots, though acquisition terms were not disclosed. The significant valuation jump is largely attributed to Shield AI’s Hivemind autonomy software being selected for the U.S. Air Force’s Collaborative Combat Aircraft drone prototype program. Notably, Shield AI’s software will operate alongside competitor Anduril’s Lattice software on the Air Force’s “Fury” autonomous fighter jet, reflecting the military’s strategy to avoid reliance on a single vendor for its