Invest in Shield AI

Shield AI's flagship product, Hivemind, is an AI pilot that enables teams of intelligent aircraft to operate and complete missions autonomously in high-threat environments, without the need for remote operators or GPS.

Hivemind is the core of Shield AI’s product ecosystem and serves as the "brains” for its drones and aircraft.

Using affordable unmanned drone swarms with autonomous pilots like Shield AI's Hivemind could replace costly assets, enhancing mission accuracy and reducing casualties. As a result, the United States and its allies have been increasing investments in these assets to bolster defenses against emerging threats from countries like China, Russia, and others.

The technology approach is similar to those in the self-driving car industry and its software stack is aircraft agnostic, allowing Shield AI to provide autonomy to a variety of form factors across the aerospace industry.

The Hivemind ecosystem comprises three interconnected components tailored for simulation and autonomy.

Hivemind Edge: This component encompasses software engineered to deliver intelligent autonomy within environments lacking GPS or data access. Platform-agnostic and capable of integration with third-party systems, Edge enables machines to execute complex tasks autonomously, without direct operator intervention. The application operates at the edge, facilitating decentralized processing and computation without dependence on a central intelligence hub.

Hivemind Design: This component offers software tailored for AI developers and designers to accelerate capability development and testing for autonomous systems. Leveraging highly customized and optimized local and cloud computing resources, Design streamlines AI capability design, configuration, data management, analysis, testing, and reporting services.

Hivemind Commander: Comprising both hardware and software, Commander facilitates human interaction within the Hivemind ecosystem. It provides interfaces and methodologies for mission planning, command and control, training, and considerations related to human factors across the Hivemind environment.

Similar to a human pilot, Hivemind reads and reacts to the battlefield, and does not require GPS, waypoints, or comms to make decisions. Hivemind enables intelligent teams to perform missions ranging from room clearance with Novas, penetrating air defense systems with V-BATs, to dogfighting F-16s.

Shield AI's Nova-class autonomous quadcopter drones, empowered by Hivemind technology, function as vital reconnaissance assets in close-quarters combat situations. These Nova drones play a crucial role during military operations by infiltrating hostile structures, capturing imagery, and generating maps. Subsequently, this data is swiftly transmitted to ground troops, facilitating informed decision-making and reducing the necessity for direct entry into potentially hazardous environments.

Following its acquisition of Martin UAV, Shield AI introduced the V-BAT, a vertical take-off and landing (VTOL) aircraft. The V-Bat drone, with a flight ceiling of 15,000 feet, is versatile for multiple missions, including force protection, aerial patrol, target search and detection, and surveillance.

A distinguishing feature of the V-Bat among Vertical Takeoff and Landing (VTOL) drones is its ducted fan design. Shield AI claims this design enhances thrust by over 80%, providing greater control authority, especially in challenging environments like rocky terrain.

Shield AI recently introduced V-BAT Teams, a first-of-its-kind software product powered by Hivemind that enables teams of V-BATs to execute missions, autonomously reading and reacting to each other and the environment just as a team of humans would normally pilot them.

This product enables a single human operator to command a minimum of four V-BATs, generating real-time AI-driven flight paths, and exhibiting dynamic read-and-react behaviors autonomously. Except for lethal decision-making, V-BAT Teams can complete missions from start to finish without the need for an operator or pilot.

Shield AI’s revenue streams primarily stem from government contracts, drone sales, and licensing the Hivemind software to third-party aircraft manufacturers.

Shield AI operates a model resembling that of a technology company rather than a conventional defense contractor. The company prioritizes front-loaded research and development efforts, assuming the risks associated with product development. This approach provides the advantage of presenting a pre-developed product line to entities like the Department of Defense (DOD) and allied military forces.

Shield AI's margin profile also mirrors that of commercial tech enterprises rather than traditional defense contractors, typically ranging between 40-50%, a significant contrast to the 5-10% margins prevalent in the defense industry.

This robust margin position theoretically enables Shield AI to reinvest more aggressively in R&D than its counterparts, fostering a cycle of innovation and expansion, particularly in AI and drone technologies, which demand substantial research and development investments.

Shield AI's upward momentum has been fueled by a series of lucrative contracts and key acquisitions.

In April 2024, Shield AI announced a definitive agreement to acquire Sentient Vision Systems (Sentient), an Australia-based leader in AI-enabled real-time situational awareness, pending customary closing conditions and regulatory approval. The companies will merge AI expertise and operational understanding to deliver superior intelligence surveillance and reconnaissance (ISR) capabilities for today's rapidly changing defense and security environment. "This acquisition unites Sentient's ViDAR and our Hivemind AI pilot, creating the world's most advanced AI-piloted ISR sensor package," said Ryan Tseng, CEO and Cofounder of Shield AI.

In August 2024, Shield AI achieved a significant milestone in its mission to advance global autonomy by successfully conducting its first-ever multi-jet autonomous flights using two Kratos MQM-178 Firejets.

In October 2024, according to The Wall Street Journal, Shield AI ngenerated revenue of $163 million last year, nearly double what it earned in 2022, mostly from contracts with the U.S. and NATO governments.

In October 2024, The Wall Street Journal reported that the company became one of the few Western suppliers to prove its resilience against the intense electronic warfare that’s disabling drones across Ukraine. Although Ukraine has typically favored locally-made drones, it has now requested hundreds of Shield AI systems. nThe Ukrainians requested over 200 Shield AI drones, which generally cost around $1 million each but come at a reduced price when purchased in bulk.nThe Ukrainians requested over 200 Shield AI drones, which generally cost around $1 million each but come at a reduced price when purchased in bulk.

In December 2024, Shield AI and Palantir announced a strategic partnership to advance autonomous flight using AI-powered intelligence and operational control. The agreement involves sharing proprietary software to enhance modern warfare capabilities. Shield AI will also adopt Palantir’s new manufacturing operating system, Warp Speed, to accelerate V-BAT drone production and scale delivery to combatant commands, said Palantir CTO Shyam Sankar.