Shield AI targets $1 billion-plus raise to build its X-BAT autonomous jet

Fundraising and the X-BAT

Shield AI is lining up a capital round topping $1 billion to move its newest autonomous fighter into production, Chief Executive Officer Gary Steele said Tuesday. On stage at the Bloomberg Tech event in London, he displayed a model of the X-BAT, a craft designed for vertical takeoff and landing so it does not need a runway. As for timing, Steele said, "Likely at the beginning part of next year, we will raise capital to support the production of the jet."

Deals and the defense investing wave

Steele said the company expects more deals after its purchase of Aechelon Technology Inc., a maker of tactical simulation software used for pilot training and for evaluating advanced aircraft and autonomous systems. "We focus on finding great acquisitions that we think could be great for our customers," he said. The remarks land as investors pour into defense startups while governments lift defense spending. In March, Shield AI secured $2 billion at a $12.7 billion valuation, lifting its worth to more than twice what it was a year earlier.

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Ukraine operations and why it matters

Shield AI serves the US and allied militaries and has maintained operations in Ukraine for the past two and a half years, employing roughly 30 people there, according to Steele. He said the team engineered around recent restrictions tied to Elon Musk's Starlink satellite service. "We assume that we're always jammed," he added.

The bottom line: a planned billion-dollar-plus raise, anticipated follow-on deals, and field experience in Ukraine point to autonomy moving from prototype to production. For your portfolio, the next cues to watch are funding milestones and contract awards that could reset valuations across defense tech.

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