Shield AI is accelerating its push to bring autonomous flight to defense and commercial aviation through a new partnership with Honeywell Aerospace (NASDAQ:HONA), extending its momentum following the purchase of simulation software maker Aechelon Technology.

The San Diego-based startup announced Wednesday that it signed a memorandum of understanding with Honeywell to develop a trusted autonomy software stack combining Honeywell’s certified avionics, navigation and sensing technologies with Shield AI’s Hivemind autonomy software.

The collaboration is designed to tackle one of autonomous aviation’s biggest hurdles: proving AI-powered aircraft can be trusted by regulators, military operators and commercial customers.

“Autonomy software can fly an aircraft—but trust has to be engineered into the architecture,” Honeywell Aerospace President of Defense & Space Matt Milas said in a statement.

Shield AI CEO Gary Steele said pairing Honeywell’s certified flight systems with Hivemind creates “a trusted foundation for AI-piloted flight” and reflects a broader shift across aerospace as software companies partner with established hardware providers.

The companies said they will jointly pursue unmanned aircraft opportunities for defense customers worldwide while exploring future commercial transportation applications. Honeywell’s avionics could also be integrated into Shield AI’s own family of autonomous aircraft.

Building A Broader Defense AI Platform

The partnership comes as Shield AI expands beyond autonomous drones.

Earlier this week, the company bought California-based Aechelon, known for its software that trains military pilots.

The deal gives Shield AI greater control over both the virtual training environments and autonomy software behind its aircraft. Combined with Hivemind and its V-BAT and X-BAT platforms, Aechelon’s technology positions Shield AI as one of the few defense startups offering an end-to-end autonomy stack.

Meanwhile, private investors continue bidding up Shield AI shares, reflecting rising enthusiasm for defense technology as AI reshapes military spending and venture capital priorities.

Forge Global’s private marketplace data estimates Shield AI shares at $163.79, implying a valuation of about $13.2 billion — slightly above its March fundraising valuation and signaling continued investor confidence despite the recent capital raise.

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