In 2025, defense startup Shield AI reached a $5.6 billion valuation, propelled by its pioneering V-BAT surveillance drones and autonomous AI software. Under new CEO Gary Steele, the company aims to nearly triple revenue by 2028, capitalizing on battlefield success and expanding international contracts.

The V-BAT drone’s proven resilience in combat zones, especially Ukraine, sets it apart. After overcoming Russian jamming attacks through AI-powered Hivemind software upgrades, it flew more than 35 missions identifying 200+ targets in 2025 alone.

• Over 16 V-BAT units actively deployed in Ukraine and allied regions.
• Contracts secured with U.S. Coast Guard, Marines, and governments in Europe and Asia.

Will you consider investing in autonomous defense technologies like V-BAT?

Appointed CEO in May 2025, Gary Steele brings a software scaling pedigree from Splunk and Proofpoint. He targets 70%-100% annual revenue growth, projecting $1 billion by March 2028 from $300 million in 2025.

• Raised $540 million in 2025 funding rounds, boosting company valuation.
• Hivemind AI software expected to constitute 50% of revenue by 2028.

Will Steele’s tech-driven approach reshape Shield AI’s market dominance?

Despite successes, Shield AI faced setbacks, notably a 2024 Navy training accident affecting revenue and contract timelines. Post-incident, the company overhauled safety procedures and implemented unassisted drone operations.

• Safety upgrades include propeller-warning labels and autonomous landing tech.
• Operational delay of two weeks after the 2024 incident.

How important is rigorous safety in high-stakes defense technology for your investment confidence?

In late 2025, Shield AI unveiled the X-BAT, a 2,000-nautical-mile range, vertical takeoff fighter jet prototype aiming for 2029 production. This platform intends to extend Shield AI’s presence from drones into manned fighter aircraft autonomy.

• Planned first test flight in 2026.
• Represents significant R&D investment and diversification.

Would you back innovative autonomous fighter jets alongside drone solutions?

Shield AI aims to embed its Hivemind software with prime defense contractors, expanding use past its own drones to helicopters and fighter jets.

• Collaborations with Airbus, General Atomics, RTX highlight integration efforts.
• Revenue from these ventures still in infancy but with substantial growth potential.

Are prime partnerships crucial for sustained success in defense innovation?

1. Monitor Shield AI’s revenue growth trajectory and international contracts.
2. Assess progress in X-BAT development and test flight milestones.
3. Watch regulatory and safety updates affecting autonomous drone deployment.
4. Evaluate adoption rates of Hivemind software among prime contractors.
5. Consider competitive landscape, including rivals like Anduril Industries.

Caption: Shield AI’s strong revenue and valuation gains illustrate robust market positioning in the defense tech sector.

• Shield AI’s V-BAT drone has proven highly effective in combat, driving a $5.6 billion valuation.
• CEO Gary Steele emphasizes rapid scaling, aiming for $1 billion in revenue by 2028.
• The company is expanding product lines with the X-BAT autonomous fighter jet.
• Safety improvements and prime contractor partnerships will be critical investment watchpoints.
• Global demand and geopolitical tensions underpin robust growth prospects.

• Defense startup Shield AI valued at $5.6B in 2025.
• V-BAT drone excels under battlefield jamming conditions.
• CEO Steele targets doubling revenue annually through 2028.
• X-BAT fighter jet diversifies defense tech portfolio.
• Partnerships with military contractors key to scaling software adoption.

What’s your outlook on investing in defense autonomy? Consider using an interactive calculator to estimate Shield AI’s impact on your portfolio based on their growth forecasts.