Shield AI and U.S. government investment in X-BAT reaches $400 million

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$150 million agreement modification supports Defense Exportability Features and is matched by $150 million in Shield AI capital WASHINGTON (October 8, 2026) — Shield AI today announced that the U.S. Navy has executed a $150 million modification to its existing Other Transaction (OT) agreement with the company to advance X-BAT, an AI-piloted, vertical takeoff and landing (VTOL) fighter aircraft. The Navy executed the $150 million modification with funding from the Office of the Under Secretary of War for Acquisition and Sustainment through its Defense Exportability Features program. Shield AI will invest $150 million of its own capital in X-BAT alongside the government funding. In August, the Department of the Navy’s Portfolio Acquisition Executive (Aviation) Rapid Capability Cell [PAE(A) RCC], in partnership with the Defense Innovation Unit (DIU),announced a separate $50 million funding action for X-BAT under the Runway Independent Maritime Expeditionary Strike (RIMES) effort. This action was a separate prior modification to the existing OT agreement referenced here. Shield AI independently committed $50 million of private capital alongside that effort. The two actions, together with Shield AI’s investments, bring announced public and private commitments to X-BAT to $400 million.

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