Shield AI agreed on November 5, 2026, to buy radar maker Echodyne in a deal valued at $5.3 billion. To pay for it, the San Diego defense company is raising $2.5 billion in new capital.
The package includes a $1 billion Series H at a $28.8 billion post-money valuation. That is more than double the $12.7 billion valuation Shield AI recorded in March 2026.
Crunchbase News ranked the $2 billion equity portion as the largest U.S. startup round for the week of October 31 to November 6.
Shield AI funding: how the $2.5 billion package breaks down
The financing has three parts, according to Shield AI’s announcement. Two are equity and one is debt.
| Component | Amount | Provider | Terms disclosed |
|---|---|---|---|
| Series H equity | $1.0 billion | Co-led by Disruptive and Innovation X Capital | $28.8 billion post-money valuation |
| Structured equity | $1.0 billion | Funds managed by Blackstone | Not disclosed |
| Debt financing | $0.5 billion | JPMorgan Chase Bank, sole arranger | Not disclosed |
| Total | $2.5 billion | Three sources | Proceeds go mainly to the Echodyne deal |
Shield AI said Series H proceeds will go mainly toward the Echodyne purchase. The $2.5 billion raised equals about 47% of the $5.3 billion deal value.
Blackstone has backed Shield AI before. In March 2026, its funds provided $500 million in fixed-return preferred equity next to the Series G.
Shield AI valuation history from 2022 to 2026
Shield AI’s valuation rose from $2.3 billion in mid-2022 to $28.8 billion in November 2026. Most of that gain came in the past 20 months.
| Date | Round | Amount raised | Post-money valuation |
|---|---|---|---|
| June 2022 | Series E | $165 million | $2.3 billion |
| October 2023 | Series F | $200 million | $2.7 billion |
| March 2025 | Series F-1 | $240 million | $5.3 billion |
| March 2026 | Series G | $1.5 billion plus $500 million preferred | $12.7 billion |
| November 2026 | Series H | $1.0 billion plus $1.5 billion other capital | $28.8 billion |
The move from $12.7 billion to $28.8 billion is a 127% increase in about eight months. Against the March 2025 mark of $5.3 billion, the valuation has grown about 5.4 times.
Shield AI’s March round placed it among the top-funded AI startups of Q1 2026. Advent International and the Strategic Investment Group of JPMorganChase’s Security and Resiliency Initiative co-led that round. Part of the money went toward buying flight simulation company Aechelon.
Why Shield AI is buying Echodyne
CEO Gary Steele described the company as three business units: autonomy software, autonomous systems and mission systems. Echodyne joins the mission systems unit.
Shield AI already sells Hivemind autonomy software, the V-BAT and X-BAT aircraft, and Aechelon simulation tools. Echodyne adds radars that detect and track drones, which counter-drone systems need before they can act.
Echodyne’s radar business and contracts
Echodyne is based in Kirkland, Washington. It builds solid-state radars with its patented Metamaterials Electronically Scanned Array (MESA) design.
Its radars sit inside hundreds of counter-drone and security systems. Defense, government and commercial customers in more than 40 countries use them.
In September, Echodyne won a contract with a $250 million ceiling from Joint Interagency Task Force 401. The contract covers counter-drone radar for U.S. and allied forces.
The same radars have civilian uses. Stadiums and airports use them to spot unauthorized drones, and police and fire departments use them to fly their own drones in shared airspace.
Echodyne recently opened an 86,350-square-foot factory, a $40 million investment. The plant can produce about 30,000 radars per year. Shield AI named Washington in September as the production home for its X-BAT aircraft.
Shield AI said both companies expect triple-digit revenue growth this fiscal year. It did not disclose Echodyne’s revenue.
Deal terms and closing timeline
Of the $5.3 billion deal value, $4.8 billion will be paid and issued at closing. Up to $500 million more depends on Echodyne meeting agreed performance targets.
Shield AI did not say how the closing payment splits between cash and stock. The company expects the deal to close in early 2027, pending regulatory approvals.
Echodyne’s team will stay in place, and its MESA radars will remain on sale as standalone products. Echodyne CEO Eben Frankenberg will report to Steele.
J.P. Morgan Securities was Shield AI’s exclusive financial advisor, with Wachtell, Lipton, Rosen & Katz as legal counsel. Morgan Stanley and Baird advised Echodyne, and Fenwick & West served as its legal counsel.
Who invested in the Shield AI Series H
Disruptive and Innovation X Capital co-led the Series H. Advent, Snowpoint Ventures, Apandion and Center15 Capital also joined.
The Strategic Investment Group of JPMorganChase’s Security and Resiliency Initiative took part as well. JPMorganChase now appears in three places in this deal: as an equity investor, as debt arranger and, through J.P. Morgan Securities, as financial advisor.
Advent and JPMorganChase both co-led the March Series G. Earlier backers include Andreessen Horowitz, while Hanwha Aerospace and L3Harris Technologies led the March 2025 Series F-1.
How the Shield AI funding round compares with other defense tech deals
Defense and space companies took four of the five largest U.S. rounds in the week ending November 6, according to Crunchbase News.
Drone delivery company Zipline raised $1.5 billion at a $21.5 billion valuation. CesiumAstro, which builds satellites and defense communications systems, closed $730 million at more than $4.5 billion.
Anduril is the closest comparison to Shield AI. It raised $5 billion at a $61 billion valuation in May 2026, and Reuters reported in July that it was in talks at about $100 billion.
Shield AI’s new valuation is less than half of Anduril’s May figure. Both companies remain private, and Anduril sits in the 2026 AI IPO pipeline with no confirmed filing.
FAQ
How much did Shield AI raise in November 2026?
Shield AI is raising $2.5 billion. The total includes a $1 billion Series H, $1 billion in structured equity from Blackstone-managed funds, and $500 million in debt arranged by JPMorgan Chase Bank.
What is Shield AI’s valuation after the Series H?
The Series H values Shield AI at $28.8 billion post-money. That is up from $12.7 billion in March 2026 and $5.3 billion in March 2025.
How much is Shield AI paying for Echodyne?
The deal is valued at $5.3 billion. Shield AI pays $4.8 billion at closing, and up to $500 million more depends on Echodyne meeting performance targets.
When will the Echodyne acquisition close?
Shield AI expects the acquisition to close in early 2027. Closing depends on regulatory approvals and other standard conditions.
Who led the Shield AI Series H round?
Disruptive and Innovation X Capital co-led the round. Advent, JPMorganChase’s Strategic Investment Group, Snowpoint Ventures, Apandion and Center15 Capital also took part.
