SAN DIEGO–(BUSINESS WIRE)–Shield AI, the defense technology company building the world’s best AI pilots and next-generation aircraft, today announced the completion of its acquisition of Aechelon Technology, Inc, a leader in high-fidelity simulation, physics-based sensor modeling, and synthetic reality technologies. The transaction follows the successful close of Shield AI’s $2 billion strategic financing package, which includes $1.5 billion in Series G funding and $500 million in preferred equity financing, valuing the company at $12.7 billion post-money.

The acquisition brings Aechelon’s industry-leading visual simulation and synthetic environment technologies into Shield AI’s product line, enabling deeper integration between Aechelon’s advanced simulation capabilities and Shield AI’s Hivemind AI pilot. Aechelon’s simulation technology is widely recognized as the leading visual simulation solution used by the U.S. military, U.S. Coast Guard and allied nations. Aechelon’s products support a range of critical national security platforms, including the Pentagon’s Joint Simulation Environment (JSE). Before the acquisition, Aechelon was a portfolio company of Sagewind Capital.

“The future of warfare will be defined by humans and autonomous systems operating and fighting together as a networked team,” said Gary Steele, CEO of Shield AI. “Simulation creates the path to prepare for that future at scale — and today, every action, by human and machine, must be tested and validated in simulation and fed back into a continuous, closed data loop. 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.”

Aechelon will continue to serve its existing customers and government programs while expanding its collaboration with Shield AI’s Hivemind division to develop next-generation autonomous capabilities. Aechelon co-founder and CEO Ignacio (Nacho) Sanz-Pastor will report directly to Gary Steele and remain responsible for Aechelon’s product and customer roadmap. Aechelon employees will join Shield AI, further strengthening the Company’s engineering, simulation, and product development capabilities.

“Throughout this process, it has become clear that Shield AI and Aechelon share a deep commitment to supporting those who serve,” said Sanz-Pastor. “Our teams have worked closely together to ensure a seamless transition, and we’re excited to begin our next chapter as part of Shield AI. By combining Aechelon’s expertise in simulation with Shield AI’s in autonomy, we have an opportunity to deliver even greater capabilities to our customers and help accelerate the development of manned and unmanned technologies that protect service members and civilians.”

About Shield AI:

Founded in 2015, Shield AI is a venture-backed defense-tech company with the mission of protecting service members and civilians with intelligent systems. Its products include Hivemind autonomy software and V-BAT and X-BAT aircraft. With offices and facilities across the U.S., Europe, the Middle East, and Asia-Pacific, Shield AI’s technology actively supports operations worldwide. For more information, visit www.shield.ai. Follow Shield AI on LinkedIn, X, Instagram, and YouTube.

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