Shield AI, the San Diego-based defense technology company specializing in autonomous systems, has secured $240 million in a strategic F-1 funding round that values the company at $5.3 billion, nearly doubling its previous valuation of $2.7 billion from late 2023.
The financing was led by strategic investors L3Harris and Hanwha Asset Management, with participation from existing backers including Andreessen Horowitz, U.S. Innovative Technology Fund, and Washington Harbour Partners.
Founded in 2015 by former Navy SEAL Brandon Tseng and his co-founders, Shield AI has developed Hivemind Enterprise, an AI-powered autonomy software suite that enables aircraft and drones to operate without GPS or communications links in high-threat environments. The technology has been successfully tested on multiple platforms, including F-16 fighter jets, MQ-20 Avenger drones, and the company's vertical takeoff and landing V-BAT drone.
"Developing autonomy is both complex and costly. Hivemind Enterprise solves this widely known problem and enables the rapid and efficient proliferation of resilient, high-performance autonomy for intelligent machines across industries," said Nathan Michael, Shield AI's Chief Technology Officer.
The new funding will accelerate the deployment of Hivemind Enterprise to original equipment manufacturers, government agencies, and companies, empowering the broader robotics and drone industrial base to build autonomy products. Shield AI's technology is already supporting U.S. and allied military operations worldwide.
This investment comes amid a defense tech boom, with competitors like Anduril Industries (valued at $28 billion) and Saronic (valued at $4 billion) also securing major funding rounds in 2025. The surge reflects growing strategic importance of AI in national security, with the four leading defense tech startups collectively raising nearly $10 billion as investors and governments prioritize autonomous systems for military applications.