Shield AI to Acquire Software Simulation Company Aechelon and Raise $2B at $12.7B Valuation

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SAN DIEGO--(BUSINESS WIRE)--Mar 26, 2026--

Shield AI today announced it is raising $1.5 billion in Series G funding at a $12.7 billion post-money valuation and $500 million in fixed-return preferred equity financing. The Series G is led by Advent International and co-led by the Strategic Investment Group of JPMorganChase’s Security and Resiliency Initiative, with participation from existing investors Snowpoint Ventures, Innovation X Advisors, Riot Ventures, Disruptive, Apandion, and others. Funds managed by Blackstone are investing $500 million of preferred equity financing, as well as committing an additional $250 million delayed draw facility to support future growth. Advent’s Chairman David Mussafer will join Shield AI’s Board of Directors and JPMorganChase’s Todd Combs will join as a Board Observer.

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Shield AI is raising $1.5 billion in Series G funding at a $12.7 billion post-money valuation and $500 million in fixed-return preferred equity financing, with a portion of the proceeds supporting the company’s planned acquisition of Aechelon Technology Inc.

A portion of the proceeds will help fund the company’s planned acquisition of Aechelon Technology Inc, a Sagewind Capital portfolio company. Aechelon is a defense software company known for its high-fidelity simulation, physics-based sensors, and synthetic reality applications. Aechelon’s technology is used by the U.S. military and allies to train pilots and test advanced aircraft and autonomous systems before live flight, and supports a range of critical national security platforms, including the Pentagon’s Joint Simulation Environment ( JSE ).

Together, these investments reflect a fundamental shift in how defense capabilities are built: increasingly shaped in software, trained in simulation, and improved through use.

“The acquisition of Aechelon will accelerate the work we are doing with Hivemind, particularly in simulation like the Department of War's JSE. It’s an incredible company with a fantastic team and a leading technology that plays a role in how we think about the AI pilot development lifecycle. It will also help advance our Hivemind Foundation Model for Defense, which is trained in simulation and continuously refined through real-world operations,” said Shield AI CEO Gary Steele. The raise will also fund certain phases of X-BAT development.

Advent’s David Mussafer said of its decision to lead the investment, “Shield AI is a rare asset with the potential to deliver strong growth over the coming years. V-BAT is rapidly scaling and delivering outcomes for militaries around the world. X-BAT is a huge opportunity to redefine air power in the fighter jet market. Hivemind is one of the most experienced and proven AI pilots in the world. We couldn’t be more excited to partner with the Shield AI team.”

“Through our Security and Resiliency Initiative, we are investing in generational companies who are poised to accelerate innovation, reinforce the defense industrial base, and help advance and scale mission-critical solutions," said Todd Combs, Head of the Strategic Investment Group for JPMorganChase's Security and Resiliency Initiative. "JPMorganChase is proud to support the AI pilots and next-generation autonomous aircraft that will strengthen global resilience and national security.”

Following closing, Aechelon will join Shield AI, continuing to operate independently while serving customers across the defense ecosystem. Aechelon co-founder and CEO Ignacio (Nacho) Sanz-Pastor will report directly to Gary Steele and remain responsible for Aechelon’s product and customer roadmap.

“We’re thrilled to continue our work and serve our customers under Shield AI. Their vision of a future filled with autonomous systems protecting service members and civilians, and deterring conflict, is inspirational. I couldn’t think of a better new home for the Aechelon team than Shield AI,” said Sanz-Pastor.

Today, Hivemind software has already piloted 26 classes of vehicles including F-16s, jet-powered UAVs, helicopters, drone boats, and ground vehicles. It was recently selected by the U.S. Air Force as a mission autonomy provider for Collaborative Combat Aircraft (CCA) and is actively conducting a flight test campaign of Hivemind onboard the Anduril YFQ-44A CCA.

The Hivemind Foundation Model for Defense is a domain-specific AI model that integrates high-fidelity simulation with data from real-world operations to help customers accelerate the adoption of AI pilots across new aircraft and missions.

The Aechelon acquisition is expected to close after customary regulatory approvals.

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

About Shield AI

Founded in 2015, Shield AI is a venture-backed deep-tech company with the mission of protecting service members and civilians with intelligent systems. Its products include Hivemind autonomy software and V-BAT and X-BAT aircraft. With offices and facilities across the U.S., Europe, the Middle East, and Asia-Pacific, Shield AI's technology actively supports operations worldwide. For more information, visit www.shield.ai. Follow Shield AI on LinkedIn, X, Instagram, and YouTube.

About Aechelon Technology

Aechelon is a global leader in simulation and training systems, specializing in geo-specific flight simulators and physics-based sensor AI training. Aechelon’s cutting-edge Synthetic Reality (SR) platform replicates real-world environments with unmatched realism, enabling both humans and machines to operate effectively in complex, detail-rich environments. This technology allows pilots and emergency responders to train for complex, high-stakes situations in immersive, ultra-realistic virtual settings.

Developed for the most demanding training, simulation and analysis missions, Aechelon’s Synthetic Reality has been the trusted tactical simulation choice of militaries throughout the free world for decades and now brings the same trusted architecture to civilian applications. Aechelon Technology is a Sagewind Capital portfolio company – please visit www.aechelon.ai for more information.

About Sagewind Capital

Founded in 2015, Sagewind is a defense and government technology focused private equity firm with offices in both New York City and Washington DC. Sagewind partners with exceptional management teams to build the next generation of defense and government technology leaders that further key National Security initiatives. Sagewind invests in companies whose offerings protect our warfighters and strengthen the communities they serve. For more information, please visit www.sagewindcapital.com.

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KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: TECHNOLOGY AEROSPACE DRONES MANUFACTURING SOFTWARE GOVERNMENT TECHNOLOGY HARDWARE ARTIFICIAL INTELLIGENCE DEFENSE

SOURCE: Shield AI

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PUB: 03/26/2026 08:03 AM/DISC: 03/26/2026 08:03 AM

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