The U.S. Navy approved a $150 million modification to an existing Other Transaction agreement with Shield AI to advance development of the X-BAT vertical takeoff and landing drone. The funding adjustment falls under the Pentagon’s Defense Exportability Features program. Shield AI committed an additional $150 million in private capital to match the government investment, bringing the total combined commitment for the program to $400 million.
What it means
The new agreement expands upon a previous funding round announced in August, when the Navy’s Portfolio Acquisition Executive (Aviation) Rapid Capability Cell and the Defense Innovation Unit awarded $50 million for the X-BAT program. That earlier award was part of the Runway Independent Maritime Expeditionary Strike effort, which seeks to field drones capable of conducting long-range strikes with minimal infrastructure support. Shield AI matched that August government funding with $50 million of its own capital.
Shield AI has designated the Seattle area as the production site for the aircraft and plans to conduct flight testing at Newton City-County Airport in Kansas later this year. The company reported employing 500 engineers and key suppliers to construct a test aircraft, noting that it has completed engine light-off and thrust-vectoring nozzle integration. Armor Harris said the team is “testing early and often while working on the aircraft, mission systems, ship suitability and production in parallel.” Shield AI describes the X-BAT as an AI-piloted fighter jet with a 26-foot length, a 39-foot wingspan, and a range exceeding 2,000 nautical miles.
Key facts
- $150 million: Navy modification to Other Transaction agreement
- $150 million: Shield AI matching private capital for new agreement
- $300 million: Total additional investment announced in this round
- $400 million: Total combined government and private investment in X-BAT
- $50 million: Previous award from Navy Rapid Capability Cell and DIU in August
- $50 million: Shield AI private capital matching the August award
- Seattle area: Announced production site for X-BAT
- Newton City-County Airport, Kansas: Location for scheduled flight testing
- 500: Number of engineers and suppliers employed on test aircraft construction
- Later this year: Scheduled timeframe for flight testing
Source: Shield AI news release