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Shield AI


Shield AI is an American defense technology company founded in 2015 by brothers Ryan Tseng and Brandon Tseng, along with Andrew Reiter, and headquartered in , . The firm specializes in developing software for autonomous operations of and unmanned systems, with its core Hivemind platform enabling pilotless flight in GPS-denied and contested environments without reliance on constant human input or pre-programmed routes.
Shield AI's flagship products include the V-BAT, a vertical unmanned aerial system designed for tactical , , and missions, capable of operating from diverse launch platforms such as unmanned surface vessels. The company has achieved milestones such as autonomously piloting the U.S. Air Force's X-62 VISTA aircraft to perform tactical maneuvers against human-piloted jets and operating the MQ-20 Avenger drone using Hivemind. In October 2025, Shield AI unveiled the X-BAT, an AI-piloted vertical fighter jet intended for penetrating contested airspace, dynamically teaming with manned aircraft, and executing collaborative tactics over extended ranges. The company has secured substantial venture funding, including a $240 million Series F round in March 2025 that valued it at $5.3 billion, supporting expansion of Hivemind as an enterprise autonomy platform for defense applications. Shield AI serves clients including U.S. Special Operations Command, emphasizing systems that enhance warfighter safety by reducing exposure to high-risk scenarios through intelligent, edge-based AI decision-making.

Founding and History

Origins and Early Development

Shield AI was founded on June 1, 2015, in , , by brothers Brandon Tseng, a former U.S. Navy SEAL officer with combat experience in , Ryan Tseng, an engineer and serial entrepreneur who previously founded WiPower (acquired by ), and Andrew Reiter, a specialist in . The origins of the company trace to Brandon Tseng's firsthand observations of the perils faced by service members in , including room-clearing operations in GPS- and communications-denied environments, where human-piloted systems proved inadequate for mitigating risks to troops. The founders sought to address these challenges by leveraging to enable autonomous operation of small unmanned systems, with an initial mission to protect soldiers and civilians through intelligent, edge-based autonomy rather than relying on large defense contractors' slower innovation cycles. Early development commenced with a team of three, focusing on prototyping AI software for indoor navigation and decision-making independent of external signals. In 2015, the company built its first product prototype, Nova, a quadcopter drone equipped with onboard AI for fully autonomous reconnaissance in confined spaces. Despite initial rejections from Silicon Valley investors skeptical of defense applications, Shield AI raised $800,000 in seed funding in 2016 from Founders Collective, which supported refinements to its core Hivemind autonomy engine. By late 2017, the startup had expanded to under 30 employees while prioritizing technologies that allowed drones to interpret sensor data and execute missions without human intervention or GPS.

Key Milestones and Expansion

Shield AI secured its first major contract in 2016 from the U.S. Department of Defense's Defense Innovation Unit to develop AI autonomy capabilities. This marked the company's initial entry into military applications, focusing on enabling unmanned systems to operate in GPS- and communication-denied environments. Subsequent growth included significant funding infusions to scale operations and technology. In August 2021, the company raised $210 million in a Series D round to advance for autonomous piloting of . By December 2023, Shield AI expanded its Series F funding to $500 million, achieving a $2.8 billion valuation and accelerating deployment across platforms. In March 2025, an additional $240 million in Series F-1 financing pushed the valuation to $5.3 billion, earmarked for enhancing Hivemind Enterprise, an developer platform. Product advancements drove operational expansion, with V-BAT drones supporting U.S. Navy and Marine Corps missions since 2016 and achieving over 23 deployments by 2024, including drug interdictions and resilience testing in . The V-BAT Teams product launched in October 2023, enabling swarming autonomous missions deployable in 2024. Hivemind integrations advanced in 2024, including multi-jet AI-piloted flights with the U.S. Air Force and maneuvers on platforms. Geographic and capability expansion accelerated through acquisitions and partnerships. In 2024, Shield AI acquired Sentient Vision Systems to integrate ViDAR imaging for enhanced , and partnered with India's to bolster Indo-U.S. defense ties. Contracts included U.S. Coast Guard V-BAT services, Japan's JMSDF selection for Group 3 UAS, and integration of Hivemind. By 2025, European efforts yielded $100 million in contracts and a autonomous flight with Airbus in . The company grew to over 1,000 employees, earned Inc. 5000 recognition, and reported $750 million in 2024 revenue with 360% year-over-year growth.

Technology and Products

Hivemind AI Autonomy Software

Hivemind is Shield AI's proprietary autonomy software stack designed to enable unmanned aerial vehicles (UAVs) and other robotic systems to perform complex missions autonomously in GPS- and communications-denied environments. It functions as an "AI pilot," processing for , , and without reliance on human intervention or external signals. First deployed in operational settings in 2018, Hivemind has powered missions including intelligence, surveillance, and reconnaissance (ISR) on platforms like the V-BAT drone. The software incorporates advanced capabilities such as state estimation, multi-agent teaming for coordinated operations, mapping and localization, and tracking, task and behavior planning, and . These features allow systems equipped with Hivemind to navigate dynamic environments, avoid obstacles, and adapt to threats in real-time, even when operating in swarms. Hivemind's architecture ensures low-latency processing on onboard hardware, prioritizing reliability for applications where failure could be catastrophic. To facilitate broader adoption, Shield AI offers Hivemind Enterprise, a developer platform including the Hivemind SDK with reference architectures, libraries, tools, and testing frameworks. This modular toolkit reduces time for custom solutions and supports integration across air, ground, and surface domains. In 2025, enhancements like Hivemind EdgeOS introduced for predictable system configuration, efficient , and robust multi-agent orchestration via a specialized messaging language. Demonstrations of Hivemind include its integration on for flights in July 2025, showcasing swarm and tactical maneuvering. Partnerships, such as with HII in 2025 for cross-domain unmanned systems and AWS for fleet-scale deployment via IoT Core and Elastic Kubernetes Service, underscore its expanding interoperability. Platform-agnostic by design, Hivemind has been tested on diverse hardware, including vertical takeoff and landing () systems like V-BAT and X-BAT, enabling missions ranging from single-unit operations to large-scale teaming.

V-BAT and Other Drone Platforms

The V-BAT is Shield AI's flagship Group 3 vertical takeoff and landing (VTOL) unmanned aerial system (UAS), optimized for intelligence, surveillance, and reconnaissance (ISR) in contested environments. It employs a ducted fan configuration for transition from hover to fixed-wing flight in under 15 seconds, with up to 45 minutes of hover capability depending on payload. Key specifications include a wingspan of 12.5 feet (3.8 meters), height of 9.6 feet (2.9 meters), and maximum gross takeoff weight of 161 pounds (73 kilograms), powered by a heavy-fuel engine compatible with JP-5. The platform achieves a maximum speed of 56 miles per hour (90 kilometers per hour), endurance exceeding 10 hours (up to 13 hours in some configurations), and a service ceiling of 18,000 feet (5,500 meters). V-BAT supports a payload capacity of up to 25 pounds across three open slots for modular sensors, enabling flexible mission profiles such as electro-optical/infrared imaging or electronic warfare payloads. In April 2025, Shield AI introduced an upgraded V-BAT block integrating for enhanced , , and fully autonomous operations without GPS reliance. This version delivers Group 4 and 5 UAS capabilities—such as extended range and heavier payloads—within a compact Group 3 , facilitating simplicity and deployment from austere locations including unmanned surface vessels. The U.S. awarded Shield AI a $198 million in July to produce V-BAT units for , following successful tests demonstrating 20,000-foot altitude operations and with naval assets. Beyond V-BAT, Shield AI has developed the , a small UAS for confined-space operations, such as indoor and tactics, powered by Hivemind for autonomous flight in GPS-denied settings. In October 2025, the company unveiled the X-BAT, an experimental jet-powered stealth drone designed as an AI-piloted or standalone fighter, featuring a 2,000-mile range, altitudes up to 50,000 feet, and supersonic capabilities without runways. X-BAT prototypes are slated for testing by fall 2026, emphasizing integration with manned aircraft for collaborative combat roles. These platforms collectively advance Shield AI's focus on scalable, AI-driven aerial autonomy for military applications.

Supporting Systems and Integrations

Shield AI's Hivemind autonomy software features modular architecture that enables integration with a wide array of platforms, sensors, and command-and-control () systems, allowing it to operate across diverse unmanned systems without requiring custom redesigns. The Hivemind SDK provides developers with libraries, tools, and reference architectures to embed into existing platforms, supporting and deployment on edge devices. Additionally, Hivemind EdgeOS serves as to ensure compatibility and reliability in resource-constrained environments, handling for , , and across heterogeneous fleets. Key integrations include partnerships with major defense contractors to enhance specific platforms. In April 2025, Shield AI teamed with U.S. Space & Defense to integrate Hivemind onto the MQ-72C Logistics Connector , enabling autonomous logistics missions with existing avionics and payloads. RTX announced a collaboration in July 2025 to incorporate Hivemind into loitering munitions and sensor systems, aiming to deliver networked collaborative autonomy for U.S. and allied forces. In September 2025, demonstrations on ' BQM-177A target drone showcased Hivemind's compatibility with onboard compute, communications, and human-machine interfaces, supporting U.S. Navy objectives. Further expansions involve cloud and synergies. A June 2025 integration with (AWS) leverages AWS IoT Core for scalable updates and of Hivemind-enabled systems, addressing challenges in over-the-air autonomy enhancements. In October 2025, a with Parry Labs combined Hivemind with STRATIA software and edge-compute hardware for integrated autonomy at the tactical edge. Hivemind Enterprise further supports seamless interfacing with any or system via its Commander module, facilitating operator oversight without proprietary lock-in. These integrations extend to counter-unmanned systems and communications. integrated Shield AI's Tracker software with MX-Series electro-optical/infrared sensors in September 2025 to detect and defeat threats passively. Earlier, in September 2023, Shield AI adopted ' Wave Relay mobile as its preferred communications backbone for Hivemind operations, ensuring resilient data links in contested environments. Such efforts underscore Hivemind's role in enabling interoperable, hardware-agnostic autonomy across air, land, and sea domains.

Military Applications and Deployments

U.S. Department of Defense Contracts

Shield AI has received numerous contracts from the U.S. Department of Defense branches, primarily for developing and integrating its Hivemind autonomy software into unmanned systems and supporting digital engineering for applications. These awards emphasize the company's role in advancing -driven solutions for , , and joint operations in denied environments. In September 2020, Shield AI was awarded a $7.2 million Phase II Small Business Innovation Research contract by the U.S. Army to develop AI capabilities for aviation units, enabling multi-agent unmanned systems to operate autonomously. On October 18, 2021, the company secured a prime position on the Air Force's Eglin Wide Agile Acquisition Contract (EWAAC), a 10-year indefinite-delivery/indefinite-quantity vehicle with a $46 billion ceiling, focused on digital and model-based systems engineering services for rapid prototyping and acquisition support. In December 2021, Shield AI received a $14.99 million firm-fixed-price modification to an existing Air Force contract (FA8649-20-C-0158) for related digital engineering efforts. By July 2022, Shield AI was selected as one of multiple awardees under the U.S. Air Force's $950 million ceiling indefinite-delivery/indefinite-quantity contract for (JADC2) initiatives, aimed at integrating for multi-domain operations. In 2024, the U.S. Navy's Aircraft Division (NAWCAD) awarded Shield AI a contract to integrate Hivemind pilot software onto the BQM-177A target drone, enhancing autonomous flight behaviors for testing and training. Most recently, on May 5, 2025, Shield AI won a U.S. NAWCAD Weapons and Oceanographic (WOLF) Autonomous Systems Integration Division Broad Agency Announcement contract valued at $3.156 million total, with an initial obligation of $637,516, to advance / innovations for naval unmanned systems.
DateAgencyValuePurpose
Sep 2020U.S. Army$7.2MPhase II SBIR for in aviation units
Oct 2021U.S. Prime on $46B EWAAC services
Dec 2021U.S. $14.99M modificationExpansion of contract FA8649-20-C-0158
Jul 2022U.S. Part of $950M JADC2 integration
Aug 2024U.S. (NAWCAD)UndisclosedHivemind integration on BQM-177A
May 2025U.S. (NAWCAD WOLF)$3.156M total/ for autonomous systems

International Partnerships and Field Use

Shield AI has forged partnerships with defense organizations in and to integrate its Hivemind autonomy software and V-BAT platforms into allied systems. In March 2025, the company collaborated with to develop AI-powered pilots for applications using Hivemind Enterprise, aiming to accelerate for KAI's aircraft platforms. Similarly, in March 2025, Shield AI partnered with the and the to advance Hivemind Enterprise for AI-driven in Singapore's defense ecosystem. In September 2025, a teaming agreement with Taiwan's focused on enhancing Taiwan's sovereign capabilities through joint technology development and local production of Shield AI systems. Further agreements underscore expansion into ground and air domains abroad. In October 2025, South Korea's Hyundai Rotem signed a memorandum of understanding with Shield AI to incorporate Hivemind Enterprise into unmanned ground vehicles via phased integration, in cooperation with local partner Quantum Aero. In November 2024, Shield AI entered a strategic partnership with India's JSW Defence to localize unmanned aircraft systems technology, supporting India's push for indigenous defense manufacturing under the "Make in India" initiative. Field deployments of AI's V-BAT vertical have demonstrated operational in international missions. In Ukraine, V-BAT conducted over 100 sorties for by special operators amid ongoing conflict, highlighting its endurance and autonomy in contested environments. From early June to August 2025, V-BAT supported , the European Union's border agency, in operations covering thousands of miles of and borders for and response. In July 2025, the Netherlands procured eight V-BAT systems to bolster intelligence, , and , following evaluations of its performance in Ukraine. Japan has integrated V-BAT for intelligence, , and from offshore patrol vessels, adapting its vertical capabilities to extend operational reach in domains. These deployments emphasize V-BAT's versatility across to Group 5 unmanned systems categories, with Hivemind enabling GPS-denied operations and multi-drone swarming. reflects growing demand among U.S. allies for scalable, AI-autonomous solutions in asymmetric and contexts, though details on approvals under U.S. remain tied to specific government-to-government agreements.

Business Operations and Funding

Investment History and Valuation

Shield AI has raised over $1.3 billion in equity and debt financing across more than 15 rounds since its founding in 2015, attracting investments from firms and strategic defense industry players. Early-stage funding supported the development of its Hivemind autonomy software, with a of $10 million in late 2018 and a Series B of $22.2 million in August 2019 led by investors including Point72 Ventures. Subsequent late-stage rounds reflected accelerating demand for AI-driven defense technologies. In June 2022, Shield AI closed an initial Series E round of $165 million (including $90 million in equity and $75 million in debt) at a valuation of approximately $2.3 billion, followed by an extension in December 2022 bringing the total Series E to $225 million. In October 2023, the company secured $200 million in an initial Series F round at a $2.7 billion , with participation from existing backers like and Riot Ventures; this was expanded later in December 2023 with an additional $300 million in equity and debt, scaling the valuation to $2.8 billion. The most recent funding came on , 2025, with a $240 million Series F extension at a $5.3 billion —nearly doubling the prior mark and positioning Shield AI as one of the highest-valued U.S. defense startups. This round included new strategic investors such as Technologies and Hanhwa Aerospace, alongside prior supporters, to fund expansion of the Hivemind Enterprise platform for broader autonomy applications. The company's valuation trajectory underscores investor confidence in its pilot amid rising geopolitical tensions and U.S. modernization efforts, though it remains privately held with no immediate IPO plans disclosed.

Organizational Challenges and Leadership

Shield AI was co-founded in 2015 by brothers Ryan Tseng and Brandon Tseng, along with Andrew Reiter, with Ryan serving as CEO and leading the company's initial growth to over 900 employees and more than $1 billion in funding. Brandon Tseng, a former Navy SEAL, has remained as President and co-founder, focusing on operations and strategic initiatives. In March 2025, the company announced a leadership transition, with Gary Steele—former CEO of , which he scaled before its $28 billion sale to in 2024, and founder of Proofpoint—appointed as CEO effective May 13, 2025; Ryan Tseng shifted to President to engage with defense stakeholders. The change was framed officially as enabling expertise in software scaling for expanding autonomy demand and aircraft production, amid a recent $240 million funding round valuing the firm at $5.3 billion. A key organizational challenge emerged from safety lapses in the V-BAT drone platform, acquired by Shield AI in 2021. In April 2024, during a U.S. demonstration in , the V-BAT crashed upon vertical landing—requiring manual assistance at the time—partially severing three fingers of a service member via its spinning propellers; the sailor recovered fully after four months. Propeller strike risks had been flagged internally since 2022, including prior incidents like shredded clothing, but executives overlooked mitigations, with former employees reporting firings or resignations after raising concerns. Ryan Tseng later conceded the platform "was not as...mature as I had thought it was when we acquired the company." These issues contributed to broader operational strains, including missed 2025 revenue targets exceeding $400 million and delayed profitability beyond that year, despite ongoing contracts like over $100 million from buyers. The leadership shift coincided with heightened scrutiny, though Tseng described it as providing "the absolute best possible leader" for the team. Employee feedback on platforms such as and has highlighted a demanding with extended hours and alleged retaliation for critiques, contrasting the company's stated emphasis on and ; such reviews, being self-selected, warrant caution as indicators of internal tensions during rapid scaling in defense tech.

Controversies and Criticisms

Safety Incidents and Reliability Concerns

In April 2024, during a U.S. demonstration flight, a Shield AI V-BAT crashed after lowering for a vertical landing and subsequently falling over, resulting in damage to the . A more severe incident occurred later that year when, amid a test involving the V-BAT, the malfunctioned, causing its propellers to strike a sailor's hand and inflict a grisly that required surgical intervention. Shield AI executives had overlooked known safety hazards with the V-BAT platform, including risks during operations near personnel, which contributed to the . These events prompted heightened scrutiny of the V-BAT's reliability, with additional reports of drones crashing into the ocean during flight tests, underscoring potential issues in autonomous control and recovery systems. On , 2025, another V-BAT (registered N443VA) experienced a throttle servo malfunction during a test flight, leading to complete engine power loss and a subsequent . The 2024 incident, in particular, correlated with business setbacks, including missed profit targets and the departure of CEO Ryan Tseng in early 2025. Reliability concerns have centered on the V-BAT's vertical mechanisms, as well as integration of software in dynamic environments, though Shield AI has maintained that such issues are addressed through iterative testing. The company's acknowledged ongoing safety challenges post-2024 accident but emphasized continued expansion and platform improvements. No public incidents involving the Hivemind software alone have been widely reported, with demonstrations on various platforms proceeding without noted failures.

Ethical Debates on AI in Warfare

Shield AI's development of -driven autonomy, such as the Hivemind software for drone swarms and platforms like V-BAT, has intersected with broader ethical discussions on lethal autonomous weapons systems (LAWS), where machines select and engage targets without human intervention. Critics, including organizations like , contend that such technologies risk dehumanizing combatants and civilians alike, potentially easing the psychological barriers to initiating or escalating conflicts due to reduced direct human involvement in killing. This perspective draws on empirical observations of biases in systems, such as higher error rates in facial identification for non-white individuals, raising concerns about discriminatory outcomes in combat scenarios. Proponents argue from first-principles that AI autonomy preserves human lives by minimizing exposure to hostile environments, as evidenced by Shield AI's emphasis on GPS-denied and resilient operations to deter rather than prosecute it. In a December 7, 2023, statement to the U.S. Senate, co-founder Brandon Tseng asserted that AI-piloted systems serve as a deterrent, stating, "the greatest victory requires no ," and explicitly opposing fully autonomous lethal decisions without human oversight. This aligns with analyses highlighting autonomy's potential to enhance precision and accountability through logged decision traces, countering claims of inevitability in errors by noting human pilots' own fallibility rates in high-stress conditions. Debates intensified in circles by October 2024, with Tseng publicly rejecting bans on AI-augmented weapons while critiquing absolutist ethical arguments against them, contrasting views from figures like Anduril's who challenge outright prohibitions. Ethicists have flagged risks of unintended escalations from rapid AI swarming tactics enabled by Hivemind, yet Shield AI maintains that its systems incorporate transparent frameworks to mitigate such issues, as outlined in internal ethical guidelines. These positions reflect a pragmatic realism: while advocacy groups amplify fears—often rooted in normative rather than causal analyses of warfare dynamics—empirical data from simulations and deployments indicate 's role in reducing compared to traditional munitions. Source credibility varies, with NGO critiques like those from exhibiting ideological tilts toward preemptive restrictions that overlook adversarial advancements in nations like , whereas defense-oriented analyses prioritize verifiable performance metrics over speculative moral hazards. No verified instances exist of Shield AI systems autonomously engaging lethal targets without supervision as of October 2025, underscoring the debate's prospective nature amid ongoing U.S. Department of Defense directives requiring protocols for lethal actions.

Strategic Impact and Recognition

Contributions to National Security

Shield AI's Hivemind autonomy software enables unmanned systems to operate independently in GPS- and communication-denied environments, addressing critical vulnerabilities in where adversaries like could disrupt traditional navigation and control. This capability allows drones to perform , , (ISR), and strike missions without human intervention, reducing risks to pilots and ground crews while maintaining operational tempo in contested domains. The software's edge-based processing supports multi-agent teaming, where swarms of drones coordinate autonomously, enhancing U.S. forces' resilience against and anti-access/area-denial (A2/AD) strategies. Deployments of Shield AI's platforms have directly bolstered U.S. . The became the first AI-piloted deployed by the U.S. military for defense purposes, providing real-time in high-threat indoor and urban settings. The V-BAT vertical takeoff and landing () secured a $198 million U.S. contract in June 2024 for unmanned system services, enabling cutter-based operations for search-and-rescue, , and interdiction without runways or forward basing. In September 2025, Hivemind was demonstrated on the Navy's BQM-177A , advancing by integrating for collaborative missions. These field uses, including support for Ukraine's defense efforts, validate the technology's and scalability. Strategically, Shield AI's innovations contribute to deterrence by enabling of affordable, intelligent systems—potentially millions of units—to overwhelm adversaries' defenses, as articulated by co-founder Tseng in advocating for AI-piloted systems as the era's premier military deterrent. The October 2025 unveiling of the X-BAT fighter jet concept, powered by Hivemind, promises runway-independent operations post-first strike, preserving air superiority even after infrastructure losses. Partnerships with RTX and integrate Hivemind into broader platforms, amplifying U.S. technological edge without relying on vulnerable manned assets. These advancements align with priorities for autonomous systems, fostering a shift toward cognitive warfare dominance.

Industry Recognition and Competitive Landscape

Shield AI has garnered recognition for its advancements in AI autonomy for defense applications. In 2021, Forbes included the company in its AI 50 list for the second consecutive year, identifying it among top artificial intelligence firms based on proprietary data and expert input evaluating innovation and impact. In June 2025, CNBC selected Shield AI for its Disruptor 50 ranking, emphasizing its Hivemind software's role in enabling autonomous drone and aircraft operations that could reshape military tactics. The company also appeared on the 2024 Inc. 5000 list, which ranks fast-growing private U.S. businesses by revenue growth over three years, reflecting its expansion amid defense tech demand. In the competitive landscape of AI-enabled autonomous drones and unmanned systems for military use, Shield AI contends with specialized firms like , , and , which similarly focus on software for swarming, piloting, and surveillance in contested environments. Anduril, for instance, develops lattice-based for counter-drone and , overlapping with Shield AI's offerings in GPS-denied scenarios. provides tactical unmanned aerial vehicles with AI integration for reconnaissance, while emphasizes autonomous navigation for enterprise and defense mapping. Shield AI distinguishes itself via its edge-deployed Hivemind AI, which supports multi-platform swarms without reliance on cloud processing or constant human input, enabling rapid iteration akin to software companies rather than legacy contractors' hardware-heavy models. This approach yields reported gross margins of 40-50%, exceeding the 8-10% typical of traditional defense primes. The sector's dynamics hinge on technological edge in AI algorithms, contract wins, and scalability, with Shield AI's venture-backed structure facilitating faster deployment compared to incumbents burdened by bureaucratic procurement.

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