Shield AI has announced a $2 billion capital raise, consisting of $1.5 billion in Series G funding at a $12.7 billion post-money valuation and $500 million in fixed-return preferred equity financing. The Series G round was led by Advent International and co-led by JPMorganChase’s Strategic Investment Group, with participation from existing investors. Funds managed by Blackstone provided the preferred equity investment along with an additional $250 million delayed draw facility.
A portion of the proceeds will fund the planned acquisition of Aechelon Technology Inc., a defense software company specializing in high-fidelity simulation, physics-based sensors, and synthetic reality applications. Aechelon’s technology supports U.S. military and allied training programs, including the Pentagon’s Joint Simulation Environment (JSE).
Shield AI CEO Gary Steele stated that the acquisition will accelerate work with the company’s Hivemind AI pilot software and support the development of its Hivemind Foundation Model for Defense, which is trained in simulation and refined through real-world operations. The funding will also support phases of the X-BAT development program.
Advent Chairman David Mussafer will join Shield AI’s Board of Directors, while JPMorganChase’s Todd Combs will serve as a Board Observer. Advent cited Shield AI’s growth potential across its V-BAT and X-BAT platforms, while JPMorganChase emphasized the company’s role in strengthening the defense industrial base.
Following the close of the transaction, Aechelon will continue to operate independently, with co-founder and CEO Ignacio Sanz-Pastor reporting to Steele.
Shield AI’s Hivemind software has flown 26 classes of vehicles, including F-16s and autonomous systems. The company was recently selected by the U.S. Air Force as a mission autonomy provider for Collaborative Combat Aircraft (CCA). The acquisition is expected to close following customary regulatory approvals.
Sidley Austin, Covington & Burling, and Sullivan & Cromwell advised Shield AI on legal matters, while Morgan Stanley served as financial advisor. Paul, Weiss, and Morrison & Foerster advised Aechelon and its majority shareholder, Sagewind Capital.
