Defense tech startup Shield AI raised $2B at a $12.7B valuation, up from $5.3B after raising $240M in March 2025; half of its business is autonomous software
The company, which develops autonomous military technology, also plans to buy a maker of simulation software as interest in next-generation defense soars.
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Shield AI Hits $12.7B Valuation With Massive $2B Raise
Defense tech firm Shield AI more than doubles its valuation in months, fueled by autonomous military software demand.
Shield AI just pulled in a staggering $2 billion funding round, catapulting its valuation to $12.7 billion. That's a jaw-dropping leap from the $5.3 billion it was worth after raising $240 million back in March 2025.
The defense tech startup builds autonomous military technology, and roughly half its business now comes from autonomous software — not hardware. That split matters. It positions Shield AI more like a software company than a traditional defense contractor.
The company isn't just sitting on the cash either. It plans to acquire a simulation software maker, doubling down as interest in next-generation defense tech continues to surge.
A 140% valuation jump in that timeframe is rare in any sector. In defense tech, it signals just how aggressively capital is flowing toward autonomous warfare capabilities.