March 26 (Reuters) – Shield AI is raising $2 billion in a new funding round at a $12.7 billion valuation, as the defense technology startup views to expand its artificial ininformigence-powered software amid growing utilize of autonomous tools during conflicts.
The startup stated 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 stated 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 utilize 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 created 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 utilize a portion of the funds to acquire simulation software creater Aechelon Technology from private equity firm Sagewind Capital, it stated, 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 stated in a statement.
The JSE is a high-fidelity virtual combat range utilized by the U.S. military to test aircraft, autonomous systems and tactics against realistic battlefield threats.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Devika Syamnath)
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