# Navy puts $150 million in Pentagon exportability money into Shield AI's X-BAT Shield AI will match it with $150 million of its own, taking announced commitments to $400 million. Flight testing of the AI-piloted fighter is scheduled for later this year. Published 2026-10-08 by TGOs. Canonical: https://tgos.io/news/2026/10/08/navy-puts-150-million-in-pentagon-exportability-money-into/ The Navy has executed a $150 million modification to Shield AI's existing Other Transaction agreement for X-BAT, an AI-piloted fighter designed to take off and land vertically, the company said Thursday, Oct. 8.[1] The money comes from the office of the Under Secretary of War for Acquisition and Sustainment, through its Defense Exportability Features program.[1] Shield AI will invest $150 million of its own capital alongside the new tranche, after committing $50 million alongside a Navy funding action in August.[1] That splits the $400 million in announced public and private commitments evenly between the company and the government.[1] Of the government's half, three-quarters is exportability money. The Navy's Portfolio Acquisition Executive (Aviation) Rapid Capability Cell and the Defense Innovation Unit announced the August money, an earlier modification to the same agreement, under the Runway Independent Maritime Expeditionary Strike effort.[1] Shield AI didn't give the agreement's original value or signing date, or itemize what the $150 million pays for, in its release or in statements reported by Defense One.[1] Shield AI aims to export X-BAT too, Defense One reported.[3] Countries particularly interested include those "looking to augment F-35 and F-16 capabilities," Armor Harris, Shield AI's senior vice president of aircraft, told the outlet.[3] The same day in Athens, Shield AI signed a strategic agreement with GEK TERNA, a Greek critical infrastructure investor, to jointly pursue X-BAT parts production, aircraft integration and long-term sustainment in Greece.[2] Roles and workshare await definitive agreements under negotiation.[2] ## Why it matters Defense One reported the Navy money will be released as Shield AI meets developmental milestones.[3] Harris told the outlet the first of two full-scale prototypes will be done "in the next couple of weeks," with flight testing at the end of this year.[3] A follow-on phase will come "if Shield AI and X-BAT continue to perform well," he said, "all leading up to fielding an early operational capability in about 2029."[3] ## Sources 1. Shield AI, "Shield AI and U.S. government investment in X-BAT reaches $400 million," Oct. 8, 2026 2. Shield AI, "Shield AI and GEK TERNA sign strategic agreement to jointly pursue the development of an X-BAT sustainment and industrial base in Greece," Oct. 8, 2026 3. Defense One, "Shield AI expects to fly its unmanned fighter jet within months," Oct. 8, 2026