Shield AI raises $2 billion in funding and acquires Aechelon to obtain simulation technology

2026-03-27 05:37:32

Investing.com - Shield AI today announced it has raised $2.0 billion in financing at a post-money valuation of $12.7 billion, and acquired the defense software company Aechelon Technology Inc. This round includes a $1.5 billion Series G round led by Advent International, co-led by JPMorgan’s Security and Resilience Initiative Strategic Investment Group, as well as a $500 million preferred stock financing from BlackRock Managed Funds.

Aechelon is a portfolio company of Sagewind Capital, developing high-fidelity simulation, physics-based sensors, and synthetic reality applications for the U.S. military and allies to train pilots and test advanced aircraft and autonomous systems. The company’s technology supports the Pentagon’s Joint Simulation Environment and other national security platforms.

Shield AI CEO Gary Steele said that the acquisition will accelerate collaboration with Hivemind, particularly on simulation within the Department of Defense’s Joint Simulation Environment. “It will also help us advance our Hivemind defense foundation model, which is trained in simulation and continuously improved through real-world operations,” Steele said. The financing will also provide funding for certain phases of X-BAT development.

After the deal closes, Aechelon will continue operating independently, while serving customers across the broader defense ecosystem. Aechelon co-founder and CEO Ignacio Sanz-Pastor will report directly to Gary Steele and continue to be responsible for Aechelon’s product and customer roadmap.

Shield AI’s Hivemind software has been flown on 26 types of aircraft, including F-16 fighter jets, jet drones, helicopters, unmanned surface vessels, and ground vehicles. The U.S. Air Force recently selected the company as the mission autonomy provider for collaborative combat aircraft, and is conducting Hivemind flight testing activities on the Anduril YFQ-44A CCA. The Aechelon acquisition is expected to be completed after completion of routine regulatory approvals.

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