Shield AI The company has secured $200 million in fresh funding to expand its autonomous flight systems for the U.S. military and its allies.
Established in 2015, the startup currently holds a valuation of $2.7 billion. The latest funding round was led by US Innovation Technology Fund (USIT) with significant participation from Riot Ventures, a previous investor in Shield AI. Other contributors include existing investors Disruptive and Snowpoint, as well as new investor ARK Invest, an investment management company founded by Cathie Wood.
USIT, guided by billionaire Thomas Tull, served as the sole investor in Shield AI’s initial $60 million Series E funding. This substantial Series F round is a testament to the company’s successful track record of fundraising – the Series E raised a total of $225 million, and its Series D ranged between $210 million and $300 million.
It also highlights the capital-intensive nature of defense-focused startups, even for companies like Shield AI that offer more affordable systems compared to their traditional counterparts.
The startup specializes in developing hardware and software to transform drones and aircraft into autonomous systems capable of carrying out missions in conflict zones. The company’s flagship product is Hivemind, an AI pilot software that enables drones and aircraft to operate autonomously without relying on GPS assistance. Shield AI has also introduced a drone swarm feature called V-Bat Teams, which allows a single human operator to command at least four V-Bat drones (developed by Martin UAV, acquired by Shield AI in 2021).
“Our nation faces the challenging reality of having insufficient pilots, and rule-based autonomous solutions are insufficient for the existence of such swarms,” said Ryan Tseng, CEO and co-founder, when announcing V-Bat Teams earlier this month. “Shield AI changes this. For nearly nine years, Shield AI has been building the world’s most advanced AI pilots using a unified AI foundation that is applicable and deployable across all aircraft types, from quadcopters to F-16s. We’ve been steadfastly focused on that.”
The San Diego-based company is also working on integrating Hivemind into unmanned fighter jets and other aircraft. The Shield AI technology stack has garnered significant interest from the Department of Defense due to increasingly sophisticated counter-drone technologies that focus on disrupting drone communications and navigation.
“The battlefield is increasingly dominated by drone warfare, and adversaries are turning the battlefield into a hostile environment by disrupting communications and GPS,” stated Stephen Marcus, co-founder and general partner at Riot Ventures. “We are doing everything we can to address this. Modern Air Forces are operating blindly. Shield’s AI pilots are intelligent and adaptable to their environment, requiring no GPS or communications. Their AI is trainable and adaptable for diverse missions, and they have successfully flown teams of copters, V-BATs, and modern fighter jets. The most comparable technology we have seen thus far is what Tesla is doing with their self-driving stack.”
The new funding arrives amidst a surge in investor support for defense technology startups, driven in part by escalating geopolitical tensions and the U.S. lagging behind its adversaries. Engineers and the Pentagon are keenly aware of the risks at hand. In fact, some Shield AI executives have made noteworthy comparisons: Back in 2021, co-founder Ryan Tseng drew parallels between the Chinese military and Netflix, and the U.S. military and Blockbuster.
Source: techcrunch.com
