Drone Defense Startup Shield AI Lands $5.3 Billion Valuation

Defense startup Shield AI has finalized a deal to raise $240 million from investors at a valuation of $5.3 billion — a funding round that adds billions to the company’s valuation, and underscores Silicon Valley investors’ interest in drones, autonomy and national security technology.

The San Diego-based startup plans to use the cash infusion to expand its software offerings. Variations of Shield AI’s Hivemind software can pilot autonomous vehicles as well as help companies build their own autonomous drones, robots and other systems.

Investors in the deal include aerospace and defense company L3Harris Technologies Inc. and South Korean aerospace company Hanwha Aerospace Co. — along ...