Shield AI Forecasts Over $540M in Revenue This Year After Valuation Soars to $12.7B

(SeaPRwire) –   Global tensions are alerting both governments and investors to the need for updated military capabilities, according to Brandon Tseng, cofounder and president of Shield AI. The company, which develops artificial intelligence-enabled drones, disclosed on Thursday that it secured $1.5 billion in a Series G funding round, achieving a valuation of $12.7 billion.

This investment surge more than doubles the worth of the San Diego-based defense startup, established in 2015, from a prior investor valuation of $5.6 billion. Shield AI anticipates revenue growth exceeding 80% by the conclusion of 2026, cofounder Brandon Tseng and CFO Kingsley Afemikhe stated. Based on the firm’s 2025 revenue, this forecast translates to a minimum of $540 million in revenue for the current year.

“We don’t expect growth to slow down,” Tseng remarked in an interview.

Shield’s Series G round—jointly led by new investors Advent International and JPMorgan Chase’s Security and Resiliency Initiative—coincides with two other significant financial actions: the planned purchase of tactical simulation firm Aechalon and a non-dilutive $500 million fixed-return preferred equity financing arrangement with Blackstone. The capital influx will finance the acquisition and aid in scaling Shield’s Hivemind autonomy platform and V-BAT surveillance drone. The money will also advance the creation of a new combat drone scheduled for its inaugural flight before year’s end.

This transaction highlights how international strife is redirecting venture capital focus in Silicon Valley, where a group of emerging firms like Anduril and Allen Control Systems are creating new technology-centric products for an evolving combat landscape. Shield AI has gained momentum from the use of its systems in Ukraine, where its V-BAT surveillance drone has been employed in live missions.

Tseng mentioned that fundraising talks started in November, before the U.S. military’s capture of Venezuelan President Nicolás Maduro or the recent attacks in Iran. He noted that investor outlook has changed in parallel with a “broad observation” of increasing global instability.

“Nations worldwide are upgrading their armed forces, and the U.S. has clearly advocated for higher defense spending among its allies and partners,” Tseng said. “That context is undoubtedly present as investors consider defense sector investments.”

Tseng did not confirm if Shield AI’s V-BAT drones have been used in Iran but stated the company is active “in almost every single conflict zone.”

As part of the funding agreement, Advent Chairman David Mussafer will join Shield AI’s board, while JPMorgan Chase investor Todd Combs will act as a board observer. Following the acquisition, Aechelon cofounder and CEO Nacho Sanz-Pastor will remain at the helm of that business unit and manage its integration with Hivemind, reporting to Shield AI CEO Gary Steele, Tseng added.

Shield’s forecast of over 80% revenue growth for this year excludes the impact of the Aechelon acquisition.

The completion of Shield AI’s funding round is also dependent on regulatory approval of the Aechelon purchase. Should the deal not pass regulatory requirements, Tseng indicated the company would “re-evaluate” the financing with its investors.

Aechelon’s platform, utilized throughout the autonomy industry to simulate combat scenarios and train AI systems, will stay accessible to other clients after the acquisition, Tseng confirmed.