Artificial intelligence, autonomous drones and other technologies have transformed battlefields in hot spots like Ukraine and Iran. A tech-driven arms race to develop the tools has put next-generation defense contractors in high demand. Among them is Shield AI, which plans to announce on Thursday that it has raised $2 billion, with some of the proceeds going toward buying Aechelon Technology, a smaller defense-tech start-up specializing in simulation software. The new capital will value Shield AI at about $12.7 billion, more than double the level it achieved in a fund-raising round a year ago. Shield AI’s latest money-raising effort underscores the interest in defense technology in Silicon Valley and beyond as investors rush to buy in.

Full report : Defense tech startup Shield AI raised $2 billion at a $12.7 billion valuation, up from $5.3 billion after raising $240 million in March 2025; half of its business is autonomous software.

For more see the OODA Company Profile on Shield AI.