American defense tech startup Shield AI has opened an office in Kyiv and is training the Ukrainian Unmanned Systems Forces to prepare for operations with the V-BAT, an unmanned vertical takeoff and landing aircraft system capable of operating in electronic warfare conditions.

According to the startup, in the Ukrainian office it has assembled a special team of engineers, operations management specialists, and technical specialists who can work directly on the ground. Training has already begun to ensure readiness to deploy the drones to the front lines.

About V-BAT drones and Shield AI

  • Shield AI was founded in 2015. The defense tech company develops artificial intelligence-based software for autonomous aircraft and drones. The V-BAT drone is one of its main products.
  • The V-BAT is designed to perform missions in challenging conditions, including areas without GPS and communications. The Shield AI statement notes that the drone has already proven its versatility during naval operations in the Black Sea, which allows it to be used for long-range missions both on land and at sea.
  • At the same time, Shield AI is preparing for a new round of investment that will nearly double the startup's valuation to $5 billion. According to sources in the Financial Times, the startup plans to raise around $200 million.
  • Investors are expected to include defense and aerospace companies such as Palantir, Airbus, and L3 Harris. Venture funds such as Andreessen Horowitz, Point72 and Riot Ventures will also participate in the round.

The previous financing round, which valued the company at $2.8 billion, took place one year ago. Since then, investor interest in defense technologies has grown significantly, driven by increased US spending on national security, global conflicts such as the war in Ukraine and the Middle East, and tensions in US-China relations.

The new round of funding comes as tech companies struggle to increase their share of the U.S. defense budget, which currently stands at $850 billion. AIN previously reported that Palantir and Anduril, the two largest US defense technology companies, plan to form a consortium of a dozen competitors to jointly bid on contracts. Shield AI is also planning to join this initiative.

The Unmanned Systems Forces of Ukraine are the first in the world to use airborne, naval surface and underwater, ground-based unmanned and robotic systems in their combat operations.