Defense Startup Shield AI Nabs $2 Billion at $12.7 Billion Value

Shield AI has raised $2 billion at a valuation of $12.7 billion, more than doubling its value from a year ago, underscoring investor demand for defense technology and artificial intelligence.

Advent International and the Strategic Investment Group of JPMorgan Chase & Co.’s Security and Resiliency Initiative co-led a $1.5 billion Series G funding round, the startup said in a statement on Thursday. Funds managed by Blackstone Inc. are investing another $500 million in preferred equity financing. The valuation includes the money raised.

Shield said it plans to use some of the proceeds to acquire Aechelon Technology Inc., which develops tactical ...