Shield AI

Defense tech has shifted from a contentious niche in Silicon Valley to a booming investment area, with startups like Anduril, Saronic, and Shield AI securing high valuations. Venture capital funding for defense tech surged to $19.8 billion in Q1 2026, raising concerns about a potential bubble, as acknowledged by Anduril CEO Brian Schimpf.

Poland has contracted U.S.-based Shield AI to purchase V-BAT drones for its Navy, enhancing maritime operations and intelligence in the Baltic Sea. Deliveries are planned for late 2026, making Poland the first NATO eastern flank country to acquire the drone, which will join operators like the U.S. Navy and Japan Maritime Self Defence Force.

The U.S. Air Force awarded production contracts for Collaborative Combat Aircraft (CCA) to General Atomics Aeronautical Systems and Anduril Industries, marking their transition from prototypes to production. Six companies, including Anduril, General Atomics, and others, will compete to develop autonomous software for the CCA, with three selected to begin work immediately. The Air Force aims to field over 150 combat-capable CCA by the end of the decade.

The Pentagon has selected Shield AI for a low-cost drone program amid rising demand due to the Iran war. Shield AI recently raised $1 billion in funding, valuing the company at $12.7 billion. This investment underscores the growing importance of affordable drones in military operations.