Shield AI unveils X-BAT, world’s first vertical takeoff AI fighter jet

San Diego-based Shield AI has unveiled the X-BAT, the world’s first vertical takeoff AI-piloted fighter jet capable of autonomous flight even when communication systems are jammed by adversaries. The 2,000-mile-range aircraft represents a significant leap in military drone technology, combining the runway-free capabilities of Shield’s smaller V-BAT drone with the firepower and range of a traditional fighter jet at roughly one-tenth the cost.

What you should know: The X-BAT addresses what Shield AI calls “the holy grail of deterrence” by eliminating the need for traditional runways while maintaining combat capabilities.

• The aircraft uses a blended wing body design powered by an afterburning jet engine, allowing it to carry missiles and electronic weapons.
• At $27 million per unit, it costs about one-tenth of legacy fifth-generation aircraft while delivering comparable “cost per effect.”
• The 26-foot-long drone is roughly one-third the size of conventional fighter jets but matches F-16 capabilities in a smaller form factor.

The big picture: The X-BAT joins an emerging class of AI-powered “loyal wingmen” being developed for the Pentagon as military officials worldwide embrace cheaper, more disposable drone swarms following lessons from Ukraine’s drone warfare.

• Venture capital investment in defense companies surged to $31 billion globally last year, a 33% increase according to McKinsey, a global consulting firm.
• Shield AI, valued at $5.3 billion, is the second-largest defense startup after $30 billion Anduril.
• The Air Force plans to choose a Collaborative Combat Aircraft design for production by fiscal year 2026, potentially selecting multiple companies.

How it works: The X-BAT leverages Shield’s Hivemind AI software, which has been battle-tested through over 150 V-BAT deployments in Ukraine where GPS and communications are unreliable.

• “You’re telling the aircraft, ‘hey, this is your zone of operations, we want you to do X-Y-Z in this area,'” explained Armor Harris, Shield’s senior vice president of aircraft.
• The AI continues missions autonomously when communication links fail, using pre-programmed instructions and rules of engagement.
• However, “a human should be on-the-loop for an offensive kill decision,” Harris emphasized.

Recent challenges: Shield AI has navigated significant hurdles while expanding its business focus toward AI software licensing.

• A 2023 V-BAT landing accident partially severed a service member’s fingers, delaying customer decisions and scrapping 2025 profitability projections.
• Ryan Tseng stepped down as CEO in favor of former Cisco executive Gary Steele, though he remains chief strategic officer.
• The company says the V-BAT now “retains a perfect record of no injuries when following trained procedures.”

Strategic partnerships: Shield’s Hivemind software is being integrated across multiple defense platforms through partnerships with legacy contractors.

• The company provides AI software for Anduril’s YFQ-44 drone in the Air Force’s Collaborative Combat Aircraft competition.
• Partnerships with RTX, Airbus, and shipbuilder HII incorporate Shield’s AI into various vehicles and weapons systems.
• A collaboration with Palantir, a data analytics company, allows both firms to use each other’s software platforms.

What’s next: Shield expects initial X-BAT vertical takeoff demonstrations by fall 2026, with full flight testing and operational validation planned for 2028.

• The company is working with Pratt & Whitney and GE to develop the aircraft’s jet engine.
• Manufacturing site discussions are underway with multiple states, with potential to create “thousands of jobs and generate billions in economic value.”
• Development comes as President Trump’s “Unleashing American Drone Dominance” executive order allocates billions for unmanned systems and AI.

Supply chain considerations: The push for domestic drone manufacturing addresses current Chinese dominance in electronics and minerals.

• China’s Ministry of Commerce placed Shield AI and 14 other U.S. entities on its export control list in March.
• Shield emphasizes partnerships with “proven U.S. partners” to ensure “resilient American supply chains.”
• The company’s existing V-BAT has been deployed by Ukraine, Israel, and U.S. special forces, with a $200 million Coast Guard contract for narcotics interdiction.