Shield AI is trying to shake up the defense industry.
The company, which is valued at $5.3 billion after securing $240 million in its latest round of funding, is set to unveil its next generation, autonomous fighter jet known as the X-Bat on Wednesday.
CNBC got exclusive access to the company's headquarters ahead of the launch.
Shield AI says the unmanned aircraft has a jet engine, will have a 2,000 mile range, can fly up to 50,000 feet and has the ability to take off and land vertically, enabling it to operate in remote locations without a runway — like on a ship in the middle of the ocean.
The X-Bat will be piloted by an AI software developed by Shield AI called Hivemind. The company is now hinging a lot of its future on artificial intelligence development.
"The software is a cornerstone and foundation for everything we do," said Shield AI CEO Gary Steele. "It will ultimately be the long term growth driver of this business because it enables the development of this next generation aircraft."
Shield AI ranks number 38 on the 2025 CNBC Disruptor 50 list.
X-Bat combines some of the defense industry's most advanced technologies into one fighter jet. There have been experimental aircrafts built as early as the 1950s with vertical takeoff and landing capabilities but they required pilots. Shield AI has also used Hivemind to fly the F-16, one of the most widely used modern fighter jets, autonomously.
"But those two things — AI piloted and vertical takeoff launch and land — have never come together in the form of a next generation aircraft," said Brandon Tseng, Shield AI president and co-founder.
The company says its on track to produce the X-Bat for around $27 million, which is a fraction of what advanced military aircrafts typically cost. For example, the F-35 fighter jet that's currently in use by the U.S. government and allies, costs more than $100 million to produce.
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