CNBC exclusive: First look at Shield AI’s new AI-piloted military fighter drone
News Summary
Shield AI, a defense technology company valued at $5.3 billion, is set to unveil its next-generation autonomous fighter jet, the X-Bat. This unmanned aircraft features a jet engine, a 2,000-mile range, a 50,000-foot flight ceiling, and vertical takeoff and landing (VTOL) capabilities, enabling operations in remote locations or on ships without runways. The X-Bat is piloted by Shield AI’s proprietary AI software, Hivemind, highlighting the company’s strategic focus on artificial intelligence as a core growth driver. Designed for combat and capable of carrying missiles, the X-Bat is projected to cost around $27 million, significantly less than the over $100 million price tag of advanced fighter jets like the F-35. Despite securing a nearly $200 million contract with the U.S. Coast Guard in 2024, Shield AI faces intense competition and profitability challenges. A 2023 drone landing incident impacted customer confidence, though the company claims to have recovered momentum. The broader landscape is favorable for Shield AI, as President Trump’s June 2025 executive order, “Unleashing American Drone Dominance,” and the “Big Beautiful Bill” are accelerating commercial drone tech and allocating billions to unmanned aerial systems and AI development.
Background
Shield AI is a defense technology startup founded in 2015, currently valued at $5.3 billion and ranked number 38 on the 2025 CNBC Disruptor 50 list. The company has gained traction in the defense sector with products like its V-Bat drone and has secured significant contracts. The role of drones in modern warfare has dramatically increased in recent years, with conflicts in Ukraine and the Middle East demonstrating their critical tactical, operational, and strategic importance. The U.S. government has acknowledged its shortcomings in this domain and is actively working to address them. In June 2025, President Donald Trump issued the executive order “Unleashing American Drone Dominance,” aimed at accelerating the commercialization of drone technologies and their integration into the National Airspace System. Additionally, the “Big Beautiful Bill” has allocated billions of dollars for unmanned aerial systems and AI development, providing substantial policy and financial backing for companies like Shield AI.
In-Depth AI Insights
How might Shield AI's X-Bat redefine U.S. defense capabilities and impact its market position? The X-Bat, by combining AI-piloted capabilities with vertical takeoff and landing at a fraction of the cost of traditional fighter jets, could have profound implications for U.S. defense strategy and Shield AI's competitive advantage. - Operational Flexibility and Cost-Efficiency: The X-Bat's ability to deploy without runways dramatically enhances military operational flexibility, especially in naval or remote environments. Its significant cost advantage means the U.S. can potentially deploy a greater number of advanced combat aircraft for a lower budget, gaining both quantitative and technological superiority. - Disrupting the Traditional Defense Industry: By offering a cost-effective yet technologically advanced solution, Shield AI is challenging established defense primes like Lockheed Martin and Northrop Grumman. This model could push the Department of Defense to re-evaluate procurement strategies, favoring cutting-edge technologies developed by innovative startups. - Alignment with National Strategy: The Trump administration's