U.S. Navy adds $150M to Shield AI's X-BAT programme, total commitment reaches $400M

What's new: The U.S. Navy has executed a $150 million modification to its existing Other Transaction agreement with Shield AI to advance X-BAT, an AI-piloted, vertical take-off and landing (VTOL) fighter aircraft. Announced on 8 October 2026, the funding comes from the Office of the Under Secretary of War for Acquisition and Sustainment's Defense Exportability Features program; Shield AI is matching it with $150 million of its own capital. Together with a separate $50 million modification in August under the Runway Independent Maritime Expeditionary Strike (RIMES) effort, announced public and private commitments to X-BAT now total $400 million.

Why it matters: A team of 500 engineers at Shield AI and suppliers including GE AerospaceDealroom has a profile for this one. Try Dealroom → has completed engine light-off, thrust-vectoring nozzle integration and weapons-bay wind-tunnel validation. X-BAT, flown by Shield AI's Hivemind AI pilot, is designed to operate in GPS-denied and communications-constrained conditions and is scheduled to begin flight testing later this year as part of DIU's RIMES project.

Read more: Naval News · Shield AI