Defense startup Shield AI is projecting more than $540 million in revenue this year as valuation more than doubles to $12.7 billion

Global conflicts are awakening governments—and investors—to the importance of modernizing military forces, says Brandon Tseng, the cofounder and president of ShieldAI, a maker of AI-powered drones that announced Thursday that it had raised $1.5 billion in Series G funding at a $12.7 billion valuation.

The new funding more than doubles the valuation of the San Diego, Calif. defense startup, which was founded in 2015 and was previously valued at $5.6 billion by investors. Shield AI is projecting more than 80% revenue growth by the end of 2026, Shield AI cofounder Brandon Tseng and CFO Kingsley Afemikhe told Fortune. That would equate to at least $540 million in revenue this year, based on Shield AI’s 2025 revenue figures.

“We don’t expect growth to slow down,”  Tseng said in an interview. 

Shield’s Series G round—co-led by first-time investors Advent International and JPMorganChase’s Security and Resiliency Initiative—is happening in tandem with two major financial moves: the pending acquisition of the tactical simulation company Aechalon and a non-dilutive $500 million fixed return preferred equity financing deal with Blackstone. The infusion of capital will fund the acquisition, as well as help Shield scale its Hivemind autonomy platform and its V-BAT surveillance drone. T...