Shield AI, a startup that makes autonomous drone technology for military applications, is raising $150 million from investors, according to people familiar with the discussions.
The deal values the San Diego-based company at $2.5 billion, said the people, who asked not to be identified discussing private information. A representative for the company didn’t immediately respond to a request for comment.
Shield AI makes software called Hivemind, which is a kind of self-driving pilot for aircraft that doesn’t require communications or GPS, and can be used in situations where enemy forces could otherwise interfere with navigation. The company has previously won US military contracts.
Earlier this year, Shield AI announced a partnership with Boeing Co. to speed the military use of the startup’s autonomous aircraft software.
The company was founded in 2015 by Ryan Tseng and his brother, Brandon, a former Navy SEAL who serves as president, along with Andrew Reiter, a technical fellow at the company. Shield AI was an early star in the defense technology space, which has recently drawn more attention and venture capital interest.
Previous investors in the startup include Andreessen Horowitz, Point72 Ventures and Snowpoint Ventures.
