Shield AI has agreed to acquire simulation software company Aechelon Technology as part of efforts to expand its technological capabilities.
The San Diego-based defense and aerospace technology company said Thursday it is also raising $1.5 billion in a Series G funding round at a post-money valuation of $12.7 billion, alongside $500 million in preferred equity financing.
Advent International leads the round, with participation from JPMorganChase’s Strategic Investment Group and existing investors. Blackstone is providing the preferred equity financing and committing an additional $250 million delayed draw facility to support future growth.
Advent Chairman David Mussafer will join Shield AI’s board, while JPMorganChase’s Todd Combs will serve as a board observer.
Shield AI will use the proceeds to help fund the Aechelon acquisition, expand its Hivemind autonomy software and advance development of its X-BAT aircraft.
What Are the Details of the Planned Aechelon Acquisition?
Shield AI CEO Gary Steele said the transaction will accelerate the development of its Hivemind software, particularly in simulation like the Department of War’s Joint Simulation Environment.
“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,” Steele said of Aechelon. “It will also help advance our Hivemind Foundation Model for Defense, which is trained in simulation and continuously refined through real-world operations.”
Upon the deal’s closing, Aechelon will operate independently within Shield AI. Aechelon Co-Founder and CEO Ignacio Sanz-Pastor will report to Steele and continue leading product and customer strategy.
What Is Aechelon Technology?
Aechelon Technology is a portfolio company of Sagewind Capital and is focused on developing simulation and training systems, specializing in geospecific flight simulators and sensor artificial intelligence training.
Its synthetic reality platform enables military users to train pilots and test aircraft and autonomous systems in immersive virtual environments before live operations.
“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.
What Does Scale AI Do?
Founded in 2015, Shield AI develops autonomy software and unmanned systems designed to support defense and national security missions.
The venture-backed company’s Hivemind platform enables AI pilots to operate a range of vehicles, including fighter jets, drones, helicopters, maritime systems and ground vehicles. The software has piloted 26 classes of vehicles and supports efforts such as the U.S. Air Force’s Collaborative Combat Aircraft program.
The company also produces V-BAT and X-BAT aircraft and continues to invest in simulation-driven training and AI model development to scale autonomous operations.
In 2025, Shield AI acquired Crowdbotics’ Data Driven Readiness software tools and raised $240 million in a funding round.
