Shield AI, a San Diego-based defense technology company specializing in AI-powered military systems and autonomous drones, has secured a $240 million funding round, bringing its valuation to $5.3 billion.
Shield AI’s Hivemind software enables fighter jets and drones to operate autonomously, reducing the need for direct human control in combat situations. With this latest funding, the company aims to expand its technology beyond military applications and explore commercial robotics partnerships.
The funding round includes investments from L3Harris, one of the largest U.S. defense contractors, as well as Hanwha Aerospace. Existing investors such as Andreessen Horowitz also participated.
Rising Valuations in Defense Tech
With this latest investment, Shield AI now ranks as the second-largest defense tech startup in the U.S., trailing only Anduril, which is currently raising funds at a $28 billion valuation.
Autonomous military systems are an increasingly competitive space. Just last month, Saronic, a startup developing autonomous warships, quadrupled its valuation to $4 billion after securing a $600 million funding round.
Shield AI plans to leverage its new funding to:
- Expand Hivemind’s capabilities for broader military and commercial use.
- Strengthen partnerships with the U.S. government and allied defense organizations.
- Develop next-generation AI autonomy solutions for various aircraft and unmanned systems.
As defense technology evolves, AI-powered autonomy is becoming a core focus for military and security applications. Shield AI’s latest funding round underscores the growing investment in this field and the increasing demand for autonomous defense solutions.
