Defense technology startup Shield AI Inc. has successfully raised $240 million in funding, achieving a valuation of $5.3 billion.

This funding round saw significant participation from strategic investors, including L3Harris and Hanwha Aerospace, as well as existing backers like Andreessen Horowitz and Washington Harbour.

The investment comes at a time when the defense sector is experiencing a surge in demand for advanced autonomous systems, highlighting the importance of AI-driven solutions in modern warfare.

Shield AI, founded in 2015, specializes in developing AI technologies for military applications, focusing on autonomy and machine learning innovations.

The company has invested over $1 billion over the past decade to develop technology capable of executing complex autonomous missions, even in challenging conditions such as GPS jamming.

As part of its expansion strategy, Shield AI aims to broaden its customer base beyond military applications to include robotics companies.

Central to Shield AI's offerings is Hivemind Enterprise, an autonomy software suite designed to enhance the development and deployment of intelligent machines.

According to CTO Nathan Michael, Hivemind Enterprise addresses the complexities and costs associated with developing autonomy in defense technology, functioning effectively in environments lacking GPS and communication tools.

Hivemind consists of three main components: EdgeOS, Pilot, and Forge, which together facilitate the rapid development and testing of autonomous machines.

Christopher E. Kubasik, CEO of L3Harris, emphasized the urgent need for advanced autonomy in defense technologies and commended Shield AI's progress in this field.

Overall, the defense tech sector is witnessing a significant increase in venture funding, with investments in defense startups reaching $3 billion in 2024, marking an 11% rise from the previous year.

In Europe, defense tech startups are gaining momentum as governments increase their defense budgets, although the region still lags behind the U.S. in this sector.