Shield AI announced that it has completed its acquisition of Aechelon Technology, a company specializing in high-fidelity simulation, physics-based sensor modeling, and synthetic reality technologies.
The transaction follows the closing of Shield AI’s $2 billion strategic financing package, which includes $1.5 billion in Series G funding and $500 million in preferred equity financing. The financing valued Shield AI at $12.7 billion post-money.
Aechelon’s technology will be integrated into Shield AI’s product line to support deeper connections between its advanced simulation capabilities and Shield AI’s Hivemind AI pilot. Aechelon’s simulation technology is used by the U.S. military, U.S. Coast Guard, and allied nations, and supports critical national security platforms including the Pentagon’s Joint Simulation Environment.
Before the acquisition, Aechelon was a portfolio company of Sagewind Capital.
Shield AI said the acquisition will help connect simulation, autonomy, and deployment into a continuous data loop. This is expected to support the development, testing, and validation of next-generation autonomous systems and manned-unmanned teaming capabilities.
Aechelon will continue serving its existing customers and government programs while expanding collaboration with Shield AI’s Hivemind division. The companies plan to work together on next-generation autonomous capabilities across simulation and deployment environments.
Aechelon co-founder and CEO Ignacio “Nacho” Sanz-Pastor will report directly to Shield AI CEO Gary Steele and will remain responsible for Aechelon’s product and customer roadmap. Aechelon employees will also join Shield AI, strengthening the company’s engineering, simulation, and product development teams.
Shield AI was founded in 2015 and develops autonomy software and aircraft systems for defense applications. Its products include Hivemind autonomy software and the V-BAT and X-BAT aircraft.
KEY QUOTES:
“The future of warfare will be defined by humans and autonomous systems operating and fighting together as a networked team. Simulation creates the path to prepare for that future at scale — and today, every action, by human and machine, must be tested and validated in simulation and fed back into a continuous, closed data loop. By bringing Aechelon in house, we can connect simulation, autonomy, and deployment into that cycle and deliver more capable manned-unmanned teaming to our customers, and to the warfighters and allies who depend on them, faster than ever before.”
Gary Steele, CEO of Shield AI
“Throughout this process, it has become clear that Shield AI and Aechelon share a deep commitment to supporting those who serve. Our teams have worked closely together to ensure a seamless transition, and we’re excited to begin our next chapter as part of Shield AI. By combining Aechelon’s expertise in simulation with Shield AI’s in autonomy, we have an opportunity to deliver even greater capabilities to our customers and help accelerate the development of manned and unmanned technologies that protect service members and civilians.”
Ignacio “Nacho” Sanz-Pastor, Co-Founder and CEO of Aechelon
