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Shield AI is a venture-backed defense technology company with the mission of protecting service members and civilians with intelligent systems. Its products include the V-BAT aircraft, Hivemind Enterprise, and the Hivemind Vision product lines. With offices in San Diego, Dallas, Washington, D.C., Abu Dhabi (UAE), Kyiv (Ukraine), and Melbourne (Australia), Shield AI’s technology actively supports U.S. and allied operations worldwide.
Memo Highlights
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Highlights
Shield AI represents a compelling investment opportunity at the forefront of the next-generation defense technology revolution. The company has achieved remarkable growth, reaching a $5.3 billion valuation 1 while building the world's most advanced AI pilot technology for military applications. With autonomous aircraft systems becoming critical to modern warfare and global defense spending surging to $2.7 trillion in 2024 2, Shield AI is uniquely positioned to capitalize on a multi-decade shift toward AI-powered defense systems.
Modern military forces face unprecedented operational challenges that traditional systems cannot address:
The Russia-Ukraine conflict has starkly demonstrated these challenges, with both sides using electronic warfare to deny GPS and communications, forcing a fundamental rethink of military autonomy requirements 5. Meanwhile, the FY 2025 U.S. defense budget has climbed toward $850 billion, yet decades of consolidation among the “Big 5” primes have slowed true innovation. Operators urgently need a software-defined autonomy layer that can fly legacy and next-gen aircraft without relying on GPS or datalinks.
Shield AI has developed Hivemind, a proprietary AI pilot software that enables aircraft to operate autonomously without GPS, communications, or human pilots 4. This breakthrough technology addresses the core challenges facing modern militaries:
The company's mission-driven approach stems from co-founder Brandon Tseng's Navy SEAL experience, where he witnessed firsthand how AI-enabled autonomy could save lives 8. Customers can license Hivemind as Enterprise software for self-integration or purchase Turnkey Solutions implemented directly by Shield AI engineers. The stack replaces brittle waypoint following with real-time perception, mapping, path-planning, and reinforcement-learned tactics.
Comprehensive Autonomous Systems Platform
Shield AI's product lineup demonstrates the versatility and maturity of their technology:
Beyond its own vehicles, Hivemind has been ported to third-party platforms through partnerships with Boeing, Korea Aerospace Industries, Singapore’s DSTA, and L3Harris, underscoring the goal of becoming the autonomy layer for “every aircraft.”
Shield AI operates in multiple expanding markets driven by global defense modernization:
Autonomous Drone Market: Valued at $8.6 billion in 2024, projected to reach $27 billion by 2030 (17.8% CAGR) 11
Military AI Market: Expected to grow from $13.24 billion in 2024 to $35.54 billion by 2031 (14.49% CAGR) 12
Global Defense Spending: Reached unprecedented $2.7 trillion in 2024, growing at the fastest pace since the Cold War 2
Shield AI can convert initial high-ASP system sales—such as a four-V-BAT package to Romania for $18 million or the U.S. Coast Guard’s $198 million ISR services contract—into multi-year Programs of Record. Successful F-16 dog-fight demos and multi-agent swarms position Hivemind to become the default software stack for Collaborative Combat Aircraft and allied efforts worldwide.
Shield AI’s autonomy has been combat-proven since 2018, when Nova became the first AI-piloted drone fielded in GPS-denied combat. V-BAT now supports U.S. SOUTHCOM, Ukrainian front-line units, and Israeli hostage-rescue missions. The company has grown to roughly 900 employees and an estimated $267 million in 2024 revenue, backed by multi-year IDIQ vehicles such as the $950 million JADC2 ceiling and the $46 billion EWACC slot. A March 2025 Series F raised $268 million at a $5.3 billion valuation, bringing total funding to $1.3 billion from investors including a16z, L3Harris, and USIT.
Shield AI has achieved significant customer traction across multiple defense organizations.
Notable Investors: Andreessen Horowitz, U.S. Innovative Technology, Point72 Ventures, Riot Ventures 1
Shield AI competes in a rapidly consolidating defense technology market:
Shield AI’s edge lies in having a single autonomy stack that already spans quadcopters to fighter jets, paired with combat validation and a software-style valuation multiple.
New CEO: Gary Steele brings proven scaling experience as former CEO of Splunk ($28B acquisition by Cisco) and founder of Proofpoint (IPO and $12B valuation) 24
The company has grown from 3 founders to over 1,000 employees in 10 years 6, demonstrating strong execution and culture.
Multiple converging factors create an unprecedented opportunity:
Shield AI represents a rare convergence of proven technology, experienced leadership, validated market demand, and favorable macro conditions that positions it as a category-defining investment opportunity in the defense technology revolution.
Memo
Shield AI represents a compelling investment opportunity at the forefront of the next-generation defense technology revolution. The company has achieved remarkable growth, reaching a $5.3 billion valuation 1 while building the world's most advanced AI pilot technology for military applications. With autonomous aircraft systems becoming critical to modern warfare and global defense spending surging to $2.7 trillion in 2024 2, Shield AI is uniquely positioned to capitalize on a multi-decade shift toward AI-powered defense systems.
Modern military forces face unprecedented operational challenges that traditional systems cannot address:
The Russia-Ukraine conflict has starkly demonstrated these challenges, with both sides using electronic warfare to deny GPS and communications, forcing a fundamental rethink of military autonomy requirements 5. Meanwhile, the FY 2025 U.S. defense budget has climbed toward $850 billion, yet decades of consolidation among the “Big 5” primes have slowed true innovation. Operators urgently need a software-defined autonomy layer that can fly legacy and next-gen aircraft without relying on GPS or datalinks.
Shield AI has developed Hivemind, a proprietary AI pilot software that enables aircraft to operate autonomously without GPS, communications, or human pilots 4. This breakthrough technology addresses the core challenges facing modern militaries:
The company's mission-driven approach stems from co-founder Brandon Tseng's Navy SEAL experience, where he witnessed firsthand how AI-enabled autonomy could save lives 8. Customers can license Hivemind as Enterprise software for self-integration or purchase Turnkey Solutions implemented directly by Shield AI engineers. The stack replaces brittle waypoint following with real-time perception, mapping, path-planning, and reinforcement-learned tactics.
Comprehensive Autonomous Systems Platform
Shield AI's product lineup demonstrates the versatility and maturity of their technology:
Beyond its own vehicles, Hivemind has been ported to third-party platforms through partnerships with Boeing, Korea Aerospace Industries, Singapore’s DSTA, and L3Harris, underscoring the goal of becoming the autonomy layer for “every aircraft.”
Shield AI operates in multiple expanding markets driven by global defense modernization:
Autonomous Drone Market: Valued at $8.6 billion in 2024, projected to reach $27 billion by 2030 (17.8% CAGR) 11
Military AI Market: Expected to grow from $13.24 billion in 2024 to $35.54 billion by 2031 (14.49% CAGR) 12
Global Defense Spending: Reached unprecedented $2.7 trillion in 2024, growing at the fastest pace since the Cold War 2
Shield AI can convert initial high-ASP system sales—such as a four-V-BAT package to Romania for $18 million or the U.S. Coast Guard’s $198 million ISR services contract—into multi-year Programs of Record. Successful F-16 dog-fight demos and multi-agent swarms position Hivemind to become the default software stack for Collaborative Combat Aircraft and allied efforts worldwide.
Shield AI’s autonomy has been combat-proven since 2018, when Nova became the first AI-piloted drone fielded in GPS-denied combat. V-BAT now supports U.S. SOUTHCOM, Ukrainian front-line units, and Israeli hostage-rescue missions. The company has grown to roughly 900 employees and an estimated $267 million in 2024 revenue, backed by multi-year IDIQ vehicles such as the $950 million JADC2 ceiling and the $46 billion EWACC slot. A March 2025 Series F raised $268 million at a $5.3 billion valuation, bringing total funding to $1.3 billion from investors including a16z, L3Harris, and USIT.
Shield AI has achieved significant customer traction across multiple defense organizations.
Notable Investors: Andreessen Horowitz, U.S. Innovative Technology, Point72 Ventures, Riot Ventures 1
Shield AI competes in a rapidly consolidating defense technology market:
Shield AI’s edge lies in having a single autonomy stack that already spans quadcopters to fighter jets, paired with combat validation and a software-style valuation multiple.
New CEO: Gary Steele brings proven scaling experience as former CEO of Splunk ($28B acquisition by Cisco) and founder of Proofpoint (IPO and $12B valuation) 24
The company has grown from 3 founders to over 1,000 employees in 10 years 6, demonstrating strong execution and culture.
Multiple converging factors create an unprecedented opportunity:
Shield AI represents a rare convergence of proven technology, experienced leadership, validated market demand, and favorable macro conditions that positions it as a category-defining investment opportunity in the defense technology revolution.