Shield AI is at the forefront of developing autonomous drones and AI-driven software for military applications. According to cofounder Brandon Tseng, the United States must prioritize the creation of affordable, intelligent drones to maintain global competitiveness. Interest in cost-effective autonomous drones is surging, evidenced by recent deals in countries like Japan and Ukraine.
Brandon Tseng’s vision for AI in the military began in 2015 when he co-founded Shield AI, driven by a pivotal question: “What role do AI and autonomy play in the military of 2035?” With over 900 employees, the startup is booming amid increasing demand for advanced military technology. Following the recent change in U.S. administration, optimism is on the rise. Nominee for Secretary of Defense, Pete Hegseth, highlighted the importance of technological modernization for the military, stating that “technology is changing the battlefield.”
After recently closing a $240 million funding round at a valuation exceeding $5 billion, Shield AI has undergone leadership changes, with Tseng’s brother, Ryan, stepping down as CEO in favor of former Splunk chief Gary Steele. Tseng emphasizes the need for “AI pilots” and affordable drones, arguing against the costly loss of $40 million to $100 million aircraft to inexpensive enemy weaponry.
He envisions a “hybrid force structure” within the military that combines a small number of expensive assets, such as fighter jets and aircraft carriers, with a vast array of affordable, intelligent drones. This strategy aims to make the military more agile and less dependent on expensive equipment, especially in areas with limited communication.
Shield AI develops these autonomous drones, including the V-BAT, which performs intelligence, surveillance, and reconnaissance (ISR) missions in contested areas without reliance on communication systems or GPS. Their AI military software, Hivemind, allows these drones to operate and make tactical decisions autonomously.
In July, Shield AI secured a nearly $200 million contract with the U.S. Coast Guard to deploy V-BAT drones, enhancing aerial capabilities and providing a safeguard against costly warplane losses. The precision of autonomous drones is a significant advantage, with studies indicating that AI-powered drones can hit their targets three to four times more effectively than those piloted by humans.
Peter Tague, managing partner at the US Innovative Technology Fund, supports the notion that cost efficiency and technological advancements are critical for the military’s future, noting the bipartisan push for military innovation.
The demand for autonomous solutions is not limited to the U.S. In January, Japan entered into a deal to acquire V-BAT drones, marking its first use of shipboard drones. Meanwhile, Shield AI has expanded its operations to Ukraine, where they are training drone operators on V-BATs. In 2024, Ukraine is expected to procure approximately 10,000 AI-enhanced drones, reflecting a broader trend as countries like Ukraine and China aim to significantly boost their drone capabilities.
Despite a surge in investment in defense technology, founders like Tseng confront profound ethical questions surrounding the use of AI in warfare, particularly regarding life-or-death decisions in combat scenarios. Tseng firmly believes that these critical choices should remain in human hands and not be delegated to AI or autonomous systems, a stance that aligns with Shield AI’s policies and broader military regulations.