Shield AI announced it is raising $1.5 billion in Series G funding alongside $500 million in preferred equity financing, reaching a $12.7 billion post-money valuation, while also acquiring Aechelon Technology Inc to expand its defense simulation and autonomy capabilities.
The Series G round is led by Advent International and co-led by JPMorganChase through its Strategic Investment Group. Additional participation comes from existing investors including Snowpoint Ventures, InnovationX, Riot Ventures, Disruptive, and Apandion. Funds managed by Blackstone are providing $500 million in preferred equity financing, along with a $250 million delayed draw facility to support future growth.
A portion of the capital will fund the acquisition of Aechelon, a Sagewind Capital portfolio company known for high-fidelity simulation, physics-based sensors, and synthetic reality platforms used by the U.S. military and allied forces. Aechelon’s technology supports pilot training and testing of advanced aircraft and autonomous systems, including its role in the Pentagon’s Joint Simulation Environment.
Following the transaction, Aechelon will operate independently within Shield AI, with CEO Ignacio Sanz-Pastor continuing to lead product and customer strategy while reporting directly to Shield AI CEO Gary Steele.
The combined investment and acquisition highlight a broader shift in defense technology toward software-defined capabilities, where systems are developed in simulation, trained virtually, and refined through real-world deployment. Shield AI said the deal will accelerate development of its Hivemind autonomy platform and its foundation model for defense, which integrates simulation and operational data to train AI pilots.
The funding will also support the development of Shield AI’s X-BAT aircraft program, while its existing Hivemind software has already piloted 26 classes of vehicles, including F-16s, UAVs, helicopters, and ground systems. The company has also been selected by the U.S. Air Force as a mission autonomy provider for its Collaborative Combat Aircraft program.
The Aechelon acquisition remains subject to regulatory approvals.
KEY QUOTES
“The acquisition of Aechelon will accelerate the work we are doing with Hivemind, particularly in simulation like the Department of War’s JSE. It’s an incredible company with a fantastic team and a leading technology that plays a role in how we think about the AI pilot development lifecycle. It will also help advance our Hivemind Foundation Model for Defense, which is trained in simulation and continuously refined through real-world operations.”
Gary Steele, CEO of Shield AI
“Shield AI is a rare asset with the potential to deliver strong growth over the coming years. V-BAT is rapidly scaling and delivering outcomes for militaries around the world. X-BAT is a huge opportunity to redefine air power in the fighter jet market. Hivemind is one of the most experienced and proven AI pilots in the world. We couldn’t be more excited to partner with the Shield AI team.”
David Mussafer, Chairman of Advent International
“Through our Security and Resiliency Initiative, we are investing in generational companies who are poised to accelerate innovation, reinforce the defense industrial base, and help advance and scale mission-critical solutions. JPMorganChase is proud to support the AI pilots and next-generation autonomous aircraft that will strengthen global resilience and national security.”
Todd Combs, Head of the Strategic Investment Group, JPMorganChase
“We’re thrilled to continue our work and serve our customers under Shield AI. Their vision of a future filled with autonomous systems protecting service members and civilians, and deterring conflict, is inspirational. I couldn’t think of a better new home for the Aechelon team than Shield AI.”
Ignacio Sanz-Pastor, Co-Founder and CEO of Aechelon Technology Inc
