Shield AI has secured a $150 million modification to its existing agreement with the U.S. Navy to advance development of X-BAT, an AI-piloted, vertical takeoff and landing (VTOL) fighter aircraft. Shield AI will match the government funding with $150 million of its own capital. Combined with a previously announced $50 million Navy funding action and Shield AI’s matching investment, total announced public and private commitments to the program have reached $400 million. The latest funding comes through the Defense Exportability Features program to support the aircraft’s development and exportability.

A team of approximately 500 engineers at Shield AI and its suppliers, including GE Aerospace, is developing the aircraft. Progress includes completing engine light-off, integrating the thrust-vectoring nozzle, and validating weapons-bay aerodynamics through low- and high-speed wind-tunnel testing. X-BAT uses Shield AI’s Hivemind software as its AI pilot, enabling operations in GPS-denied and communications-constrained environments. Flight testing is scheduled to begin later in 2026, with development efforts progressing across the aircraft, mission systems, ship compatibility, and production.

Part of the Defense Innovation Unit’s Runway Independent Maritime Expeditionary Strike (RIMES) initiative, X-BAT is designed to operate from aircraft carriers, amphibious assault ships, islands, and other austere locations without conventional runways. Its low-observable, multirole design aims to extend long-range strike capabilities, increase sortie generation, and expand operational flexibility for U.S. naval forces. Shield AI says the aircraft is being designed to integrate safely with existing carrier air wing operations while enhancing the Navy’s combat reach and reducing reliance on fixed runways.