US Navy Modifies Agreement, Boosting Shield AI's X-BAT Program to $400 Million Investment

By ASR Newsdesk · 9 Oct 2026, 09:00 UTC

Shield AI announced a $150 million modification to its existing Other Transaction agreement with the U.S. Navy for the AI-piloted X-BAT VTOL aircraft. This funding, from the Office of the Under Secretary of War for Acquisition and Sustainment, is supplemented by $150 million of Shield AI's capital. Previously, a separate $50 million action from the Department of the Navy's Rapid Capability Cell, alongside $50 million from Shield AI, contributed to the program. These combined efforts bring the total announced public and private investment in X-BAT to $400 million. The program involves 500 engineers and suppliers, with testing including engine integration and weapons bay aerodynamics. Shield AI's Hivemind software enables GPS-denied operations.