- Shield AI has finalized its purchase of Aechelon Technology three months after its initial announcement
- Aechelon is valued at $12.7 billion post-money after Series G fundraising and preferred equity financing
- The deal gives Shield AI rights to Aechelon’s synthetic reality and visual simulation technologies
Shield AI announced Monday that it has completed the acquisition of simulation software company Aechelon Technology in a deal worth up to $12.7 billion. The transaction was finalized three months after Shield AI made the public aware of its buyout plans in March.
What Were the Financial Requirements of the Acquisition?
San Diego-based Shield AI raised $1.5 billion in a Series G funding round and $500 million in preferred equity financing. Investors led by Advent International as well as the JPMorganChase Strategic Investment Group managed the funding round. A $250 million delayed draw facility was committed by asset management firm Blackstone.
What Will Change Following Shield AI’s Takeover of Aechelon?
Shield AI is expected to harness Aechelon’s “synthetic reality” and other visual simulation technologies to boost its Hivemind artificial intelligence software for crewed and uncrewed military aircraft. In collaboration with the Hivemind business unit, Aechelon will continue to develop autonomous systems for civilian and government customers.
Shield AI’s acquisition of Aechelon highlights the growing role of AI, simulation and autonomous systems in advancing next-generation air and space capabilities. Join the Potomac Officers Club’s 2026 Air and Space Summit on July 30 to hear government and industry leaders discuss the technologies shaping the future of defense innovation. Book your seats now!
What Are the Leadership Changes Following the Acquisition?
Shield AI CEO Gary Steele will remain at the helm, while Aechelon co-founder and CEO Ignacio Sanz-Pastor will report to Steele and oversee product and customer strategy. Aechelon will continue to operate independently within its parent company.
“By bringing Aechelon in house, we can connect simulation, autonomy, and deployment into that cycle and deliver more capable manned-unmanned teaming to our customers, and to the warfighters and allies who depend on them, faster than ever before,” Steele remarked.
