Shield AI closes $1.5B Series G round and moves on acquisition

Shield AI, a maker of artificial intelligence-centric software to operate autonomous vehicles and other systems, has completed a $1.5 billion Series G capital raise with some of the proceeds going toward a planned acquisition.

Aechelon Technology is an image generation and simulation software developer that opened for business in 1998. The software is designed to help enable full-flight aircraft simulators for training military pilots and testing uncrewed aircraft before live flight.

Through this acquisition announced Thursday, Shield AI is looking to integrate Aechelon’s high-fidelity simulation and other related applications into the former’s Hivemind software ecosystem for enabling autonomous operations. Financial terms of the transaction were not disclosed.

Hivemind is a flagship offering of Shield AI alongside its V-BAT and X-BAT drones. A portion of the Series G proceeds will also support efforts to further develop and deliver those vehicles.

For Aechelon, its pending sale comes less than two years after private equity firm Sagewind Capital acquired majority ownership of the company. Aechelon provides simulation technology to the U.S. military’s Joint Simulation Environment, which is used to test and validate autonomous systems and combat aircraft.

Shield AI previously closed a $240 million Series F-1 round in March 2025 that included L3Harris Technologies as a new investor.

Both that and the Series G round highlight investor interest in defense tech companies that specialize in AI and autonomy as militaries around the world, including the U.S., are seeking to ramp up spending on those systems.

Shield AI’s touted valuation increases to $12.7 billion following the Series G round, which was co-led by private equity firm Advent International and the direct investment arm of JPMorgan Chase’s Security and Resiliency Initiative.

The global banking and finance giant unveiled that initiative in October to commit $1.5 trillion in capital toward national security and other industries it sees as critical to U.S. interests. As part of that, JPMorgan plans to make $10 billion in direct equity and venture capital investments in companies.

Existing Shield AI investors that participated in the Series G round included Snowpoint Ventures, Innovation X Advisors, Riot Ventures, Disruptive and Apandion. Funds managed by Blackstone are investing $500 million in preferred equity financing and committing an additional $250 million delayed draw facility to support future growth.

Advent’s agreement to co-lead the Series G round for Shield AI also represents an early move by the PE firm to invest up to $1 billion in emerging defense technology companies, including those focused on artificial intelligence and autonomous systems.

Advent’s portfolio of defense tech companies includes Cobham, Ultra Electronics, Vantor (formerly Maxar Intelligence) and Attalon.

On the Aechelon acquisition, Sidley Austin LLP was legal adviser to Shield AI. Covington & Burling LLP advised Shield AI on regulatory and business diligence matters. J.P. Morgan Securities LLC was exclusive financial adviser to Aechelon. Paul, Weiss, Rifkind, Wharton & Garrison LLP was legal adviser to Aechelon and Sagewind Capital. Morrison & Foerster LLP advised Aechelon on government contracting matters. On the financing, Sullivan & Cromwell LLP was legal adviser to Shield AI. Morgan Stanley was exclusive financial adviser to Shield AI on the financing package to carry out the transaction.