Shield AI announced it is raising $1.5 billion in Series G funding at a $12.7 billion post-money valuation, alongside $500 million in fixed-return preferred equity financing.
The round is led by Advent International and co-led by JPMorganChase’s Strategic Investment Group under its Security and Resiliency Initiative, with participation from existing investors including Snowpoint Ventures, InnovationX, Riot Ventures, Disruptive, and Apandion.
Funds managed by Blackstone are providing the $500 million preferred equity investment and an additional $250 million delayed draw facility. Advent Chairman David Mussafer will join Shield AI’s Board, while JPMorganChase’s Todd Combs will serve as Board Observer.
Part of the proceeds will fund Shield AI’s planned acquisition of Aechelon Technology, a defence software firm specializing in high-fidelity simulation and synthetic environments used by the U.S. military, including the Pentagon’s Joint Simulation Environment. Aechelon will continue operating independently, with CEO Ignacio Sanz-Pastor reporting to Shield AI CEO Gary Steele.
The deal underscores a broader shift toward software-defined defence capabilities built and refined through simulation and real-world data. Steele said the acquisition will accelerate development of Shield AI’s Hivemind AI pilot system and its Foundation Model for Defense.
The funding will also support development of Shield AI’s X-BAT program. Investors highlighted the company’s growth potential, citing its V-BAT platform and Hivemind’s track record across multiple autonomous systems.
Hivemind has already piloted 26 vehicle types, including F-16s, UAVs, and ground systems, and was recently selected by the U.S. Air Force for its Collaborative Combat Aircraft program.
The Aechelon acquisition is subject to regulatory approval. Advisors on the transaction included Sidley Austin, Covington & Burling, J.P. Morgan Securities, and Morgan Stanley.
Source: Shield AI