The US Navy has added $150 million to Shield AI’s X-BAT development effort, extending support for the AI-piloted vertical take-off and landing fighter as the programme moves towards flight testing. Shield AI is matching the new government funding with another $150 million of its own capital, bringing announced public and private investment in X-BAT to $400 million.
The latest modification to the existing Other Transaction agreement is tied to the Pentagon’s Defense Exportability Features programme, which is intended to build exportability and technology-protection measures into systems early in development. That makes X-BAT a more export-ready prospect for US allies while limiting exposure of sensitive capabilities.
The funding follows a separate $50 million Navy and Defense Innovation Unit action announced in August under the RIMES effort, which Shield AI also matched. X-BAT has not yet flown, but flight testing is expected before the end of 2026.
The programme is being positioned as a runway-independent combat aircraft able to operate from ships, islands and other austere locations, giving the US Navy a potential new maritime and expeditionary option. Public reporting on 8 and 9 October aligned on the same funding action, the $400 million total and the pre-flight status of the aircraft.