Shield AI, a defense technology startup, has augmented its latest funding round by securing an additional $300 million in equity and debt, thus elevating the total Series F funding to $500 million, according to exclusive information.
This cumulative amount comprises $200 million in equity concluded in November, an additional $100 million in new equity acquired at the Series F valuation, and an infusion of $200 million in debt, with Hercules Capital serving as the debt provider. Shield AI has opted not to disclose the origin of the supplementary equity. As of now, the company’s valuation has risen to $2.8 billion, marking an increase from $2.7 billion in November.
Shield AI is actively engaged in the development of an “AI pilot” designed to transform aircraft into autonomous systems. The flagship product, Hivemind, empowers teams of aircraft to operate independently, free from the constraints of remote operators, communication dependencies, or reliance on GPS. The credit for this capability is attributed to recent advancements in computing, as stated by Ryan Tseng, the CEO and co-founder of Shield AI.
According to Tseng, “AI pilots are becoming a strategic conventional deterrent in class with our aircraft carriers and guided missile submarines.” He emphasized that this represents a significant paradigm shift for the aerospace and defense industry, being the first software-defined strategic deterrent made possible by recent breakthroughs in AI and computing power.
Despite the often-negative perception of venture debt, Shield AI sees its strategic value, particularly for late-stage companies requiring a capital injection to reach crucial milestones such as profitability or exit. In the case of Shield AI, venture debt in the later stages is viewed as a prudent means of capitalizing a growing company.
The San Diego-based company has recently unveiled V-BAT Teams, a software product that collaborates with Hivemind, facilitating autonomous and coordinated missions for teams of V-BAT drones.
During recent testimony before the U.S. Senate, Brandon Tseng, president, and co-founder of Shield AI, underscored the significance of AI-piloted systems in the country’s overall deterrence strategy. He stated, “We believe AI-piloted systems will be the greatest military deterrent of our generation. We must get it right.” However, he acknowledged the challenges in integrating AI pilots into the Department of Defense’s force structure, describing the process as “difficult and murky.” Tseng urged a shift in the DoD’s approach, emphasizing the need to focus resources on cutting-edge technological assets for future warfare.
