The message below was shared with Shield AI employees today.

A year ago, I joined Shield AI because I believed this company had the potential to play a defining role in the future of defense. A year later, the outcomes we’re delivering have only reinforced that belief. Shield is entering its next phase. Our job now is to scale what is working, advance what comes next, and move at the pace this moment demands. 

The direction of the market is clear. Defense is accelerating toward AI and autonomy. Customers need systems that can be trusted under real operational conditions and at scale. That makes software and simulation more important than ever. It also raises the premium on speed. 

In FY26, we doubled orders and revenue year over year. We expanded V-BAT deployment around the world. Hivemind is now piloting 30 classes of vehicles and expanding across new platforms and missions. We advanced Hivemind’s role in efforts like the U.S. Air Force’s Collaborative Combat Aircraft program. We unveiled X-BAT. In late Q4, we announced $2 billion in new funding at a $12.7 billion valuation, along with our planned acquisition of Aechelon. 

Taken together, these milestones show more than growth. They show a company that is increasingly built for where the market is going. 

They also show where Shield can lead. 

Some parts of our portfolio are already delivering value in the field. V-BAT and Hivemind are proving their relevance in the kinds of environments that matter most to customers. One lesson we have learned clearly is that ground truth matters. We are one of a few U.S. defense companies with a permanent presence in Ukraine. You have to be close to operators and real conditions to build systems that people can trust in the most contested environments in the world. 

Other parts of the portfolio are about the capabilities the market needs. We are reimagining airpower with X-BAT, what we believe is the greatest transformation in military aviation in more than 100 years. X-BAT is a major bet on the future of autonomous airpower and the role Shield will play in it.  

Modern air combat still depends on runways, carriers, tankers, and tens of millions of dollars per aircraft. X-BAT breaks every one of those constraints and goes where legacy fighters cannot. Pair that with an AI pilot built to operate independently and at machine speed, and you begin to change the equation. 

The work ahead is to test, validate, and advance X-BAT with the same rigor we bring to everything we build. 

Winning in autonomous systems comes down to who improves fastest. That is why our planned acquisition of Aechelon matters. Aechelon’s technology is used by the U.S. military and allies to train pilots and test advanced aircraft and autonomous systems before live flight. Bringing Aechelon together with Hivemind closes the loop on AI pilot development: simulation becomes the training ground for our autonomy, which is then continuously refined through real-world operations. That makes iteration safer, shortens development cycles, and increases confidence in the autonomy we deliver. We see it as a meaningful advantage in a field where the pace of learning is everything. 

The same advantage extends to how we build the business. Private capital allows us to fund innovation ahead of demand and move faster than traditional defense companies. Combined with a growing international business, it gives us a stronger foundation for long-term growth and continued investment. 

We are building on what the company has created over the last 11 years to continue scaling the business globally. That means concentrating on areas where we can execute best and deliver the most impact for customers. 

The opportunity ahead is larger than it was a year ago. So is the responsibility. What remains constant is our mission: to protect service members and civilians with intelligent systems. Our job now is to deliver on that mission with focus, discipline, and the scale required to advance the next generation of capabilities our customers will need.  

Thanks again for everything you’re doing. We have a lot to be proud of, and a lot still ahead of us. 

Gary Steele
CEO, Shield AI