Joby Aviation has acquired Shield AI for $500.0 million, a cash-and-stock transaction that brings the defense-technology company under the air mobility firm’s ownership. The deal, finalized this week, transfers all of Shield AI’s operations, intellectual property, and roughly 900 employees to Joby, which will operate the acquired business as a wholly owned subsidiary.
Shield AI, founded in 2015, develops autonomous systems for military and government clients. Its core products include the Hivemind autonomy software, which enables aircraft to operate without GPS or external communications, as well as the V-BAT and X-BAT unmanned aerial vehicles and Aechelon simulation technologies. The company maintains offices and facilities across the U.S., Europe, the Middle East, and Asia-Pacific, with its systems currently supporting active operations in multiple regions.
For Joby Aviation, best known for its electric vertical take-off and landing aircraft and passenger air taxi services, the acquisition expands its portfolio into defense and government markets. Joby has previously supplied the U.S. Department of Defense with prototype aircraft, but Shield AI’s established contracts and field-tested autonomy stack provide a deeper foothold in that sector. The purchase also gives Joby access to Shield AI’s engineering teams and simulation capabilities, which could accelerate development of its own autonomous flight systems.
The strategic rationale centers on shared technology. Shield AI’s Hivemind software is designed for fully autonomous flight, a capability Joby intends to integrate into its commercial aircraft over time. Conversely, Joby’s manufacturing expertise and supply chain could help Shield AI scale production of its V-BAT and X-BAT platforms beyond current volumes. The combined entity will maintain Shield AI’s existing customer relationships while exploring cross-selling opportunities between defense and civilian aviation programs.
The transaction is expected to close by the end of the current quarter, subject to regulatory approvals. Post-close, Shield AI’s leadership will remain in place to manage day-to-day operations, reporting to Joby’s executive team. The combined company will prioritize delivering on existing Shield AI contracts while evaluating how its autonomy software can be adapted for Joby’s commercial fleet, with initial integration tests slated for next year.