News of War Editor-in-Chief Casey Christie
Shield AI Expands Series F Funding to $500 Million, Furthering AI Pilot Technology in Defence Sector
Shield AI, a prominent player in defense technology, today made a groundbreaking announcement about the expansion of its Series F funding round, reaching an impressive total of $500 million. This significant financial boost includes an additional $100 million in equity, consistent with Series F valuation, along with $200 million in debt financing from Hercules Capital. This latest round of funding adds to the initial $200 million in equity secured in November.
Shield AI, renowned for developing advanced AI pilots for aircraft, is experiencing a surge in industry recognition and financial backing. This expansion underscores the strategic importance and growing reliance on AI technologies in modern warfare and defence strategies.
Ryan Tseng, CEO and Co-founder of Shield AI, highlighted the revolutionary nature of AI pilots, equating their strategic importance to that of aircraft carriers and guided missile submarines. "This is a major paradigm shift in aerospace and defence. AI pilots, being software-defined, represent the latest technological advancement made possible through AI and computing power," said Tseng.
The expansion of the funding round reflects a growing acknowledgment within the defence and investment communities of the transformative role AI pilots can play in national security and global stability.
Tseng, a former Navy SEAL, emphasised the capabilities of AI pilots in addressing contemporary challenges such as electronic warfare and the need for intelligent, affordable mass in military operations.
"AI pilots can counteract the issues plaguing thousands of drones monthly in the Russia-Ukraine War. They enable a new operating concept where swarms of cost-effective aircraft can undertake missions typically assigned to more expensive, high-end aircraft," Tseng stated.
A key innovation of Shield AI is Hivemind, an AI pilot system that allows teams of intelligent aircraft to autonomously execute missions in high-threat environments, without reliance on remote operators or GPS. Hivemind, analogous to autonomous driving technology in cars, is adaptable to various aircraft types.
It has already been tested on quadcopters, the MQ-35A V-BAT, and the F-16, with plans to operate on Kratos' XQ-58 Valkyrie next year. Shield AI boasts the most autonomous flight hours in executing complex fighter jet manoeuvres like dogfighting.
The company also recently introduced V-BAT Teams, a novel software product powered by Hivemind.
This technology enables groups of V-BATs to perform missions autonomously, mirroring the coordination and adaptability of human-operated teams. This development represents a significant leap in unmanned aerial technology, potentially reshaping the future of military operations and defense strategies.
Shield AI's expansion of its Series F funding round marks a pivotal moment in the defence technology sector, emphasising the growing importance and evolving capabilities of AI in military applications.