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Contracts · Drones

PDW plans Booz Allen autonomy software for its AM drones and Army-bought C100

The AM package entered controlled testing on Sept. 30. The Oct. 9 announcement named no government buyer, contract or funding for the software on either aircraft.

Booz Allen's new mission autonomy software has a planned 2027 path onto the C100, a quadcopter from Performance Drone Works (PDW) that the Army already buys.1–3 PDW, the Huntsville, Ala., drone maker, announced Oct. 9 that it is integrating the software, powered by Shield AI's Hivemind, on a different aircraft: its AM (Attritable Multirotor) drones.1

PDW plans Booz Allen autonomy software for its AM drones and Army-bought C100

Dates from PDW's Oct. 9, 2026, announcement; C100 fielding from PDW's Sept. 16, 2025, release

Sept. 30AM drones with the Booz Allen software entered controlled testing
First quarter 2027planned general availability of the AM package
2027planned extension of the software to PDW's C100 quadcopter
SevenArmy units fielded the C100 under the first two Transformation in Contact contracts

The Army has bought the C100; the software is only planned for it. PDW's Oct. 9 announcement named no government buyer, contract or funding for the Booz Allen software.

Source: Performance Drone Works releases, Sept. 16, 2025 and Oct. 9, 2026

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On AM, Booz Allen's software is an add-on: customers can fly the drone in its base configuration or add the software for "autonomy-assisted perception and operator-authorized effects delivery." It is meant to help operators execute parts of the mission workflow with reduced manual control while keeping decision-making authority. AM is a Group 1 drone that can be recovered and reused for intelligence, surveillance and reconnaissance, then configured for attritable strike.1

The C100 went to seven Army units under the first two Transformation in Contact (TiC) contracts. In September 2025, PDW announced a third TiC award, worth $20.9 million.2 It says the Army expanded C100 use through follow-on procurement in the first half of 2026.3

PDW is also integrating a second Booz Allen product, a secure over-the-air fleet update tool, across its aircraft portfolio. Built for denied, disrupted, intermittent and limited-connectivity environments, it is designed to replace aircraft-by-aircraft software changes and cut approved update cycles from weeks or months to hours. Randy Yamada, a vice president and autonomy lead in Booz Allen's defense technology business, said the fleet manager provides "the secure software delivery and lifecycle management needed to update and verify" the autonomy capabilities.1

The AM package is planned for general availability in the first quarter of 2027, and an order naming the Booz Allen option would show a buyer behind it.1

Sources (3)
  1. Performance Drone Works: PDW to Deliver Booz Allen Mission Autonomy Software and Secure Fleet Updates on AM Drones (Oct. 9, 2026) www.prnewswire.com
  2. Performance Drone Works: PDW Awarded $20 Million Army Contract for 'Transformation in Contact' Initiative (Sept. 16, 2025) pdw.ai
  3. Performance Drone Works: First Half 2026 Customer Adoption Update (July 2026) pdw.ai
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Contracts · Uncrewed combat aircraft

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.

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. The money comes from the office of the Under Secretary of War for Acquisition and Sustainment, through its Defense Exportability Features program.1

$150 million agreement modification supports Defense Exportability Features and is matched by $150 million in Shield AI capital

announced public and private commitments to X-BAT

U.S. Navy$150 million modificationcontingent

the Navy money will be released to Shield AI as it meets developmental milestones

Shield AI capital$150 millionplanned

Shield AI will invest $150 million of its own capital in X-BAT alongside the government funding

Source: Shield AI, Oct. 8, 2026. Milestone release reported by Defense One, Oct. 8, 2026

Sources
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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. 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. 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. 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. Roles and workshare await definitive agreements under negotiation.2

Defense One reported the Navy money will be released as Shield AI meets developmental milestones. 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. 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 (3)
  1. Shield AI, "Shield AI and U.S. government investment in X-BAT reaches $400 million," Oct. 8, 2026 www.prnewswire.com
  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 shield.ai
  3. Defense One, "Shield AI expects to fly its unmanned fighter jet within months," Oct. 8, 2026 www.defenseone.com
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M&A

Shield AI agrees to buy Echodyne in $5.3 billion radar deal

The acquisition would expand Shield's Mission Systems business with counter-drone radars. A $2.5 billion financing package includes structured equity from Blackstone-managed funds.

Shield AI announced a definitive agreement Nov. 5 to acquire radar maker Echodyne in a transaction valued at $5.3 billion. The terms call for $4.8 billion to be paid and issued at closing, with up to $500 million contingent on Echodyne meeting agreed performance targets.1

Shield announced a definitive agreement to acquire Echodyne Corp.

in a transaction valued at $5.3 billion

at closing$4.8 billionplanned

$4.8 billion will be paid and issued at closing

performance targetsup to an additional $500 millioncontingent

up to an additional $500 million is contingent on Echodyne meeting agreed performance targets

The acquisition is expected to close in early 2027, subject to receipt of applicable regulatory approvals and satisfaction of other customary closing conditions.

Source: Shield AI release via PR Newswire. As of Nov. 5, 2026.

Sources
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The acquisition would add counter-drone radar to Shield's Mission Systems business, expanding a company that also builds Hivemind autonomy software and V-BAT and X-BAT autonomous systems. Shield says Echodyne's radars are built into hundreds of counter-drone and security systems in more than 40 countries. They are integrated onto remote weapon stations, high-energy lasers and high-power microwave systems, and cue interceptors toward incoming drones.1

Shield is raising financing that includes $1 billion in structured equity from funds managed by Blackstone and $500 million in debt led by JPMorgan Chase Bank. A $1 billion Series H round is also part of the package.1

The Series H carries a $28.8 billion post-money valuation, with proceeds principally intended to fund the acquisition. Shield expects the deal to close in early 2027, subject to regulatory approvals and other customary closing conditions.1

In September, Echodyne received a contract with a $250 million ceiling from Joint Interagency Task Force 401 to supply counter-drone radar to U.S. and allied forces. The Kirkland, Washington, company recently opened a manufacturing facility that Shield says will be able to produce about 30,000 radars annually.1

The deal would bring a supplier to counter-drone integrators under Shield's ownership while keeping Echodyne's radars available as standalone products. Shield says Echodyne's team will remain in place after closing, with Echodyne CEO Eben Frankenberg retaining responsibility for products, manufacturing operations, and partner and customer engagement.1

Sources (1)
  1. Shield AI, "Shield to acquire Echodyne in a transaction valued at $5.3 billion and raise $2.5 billion at a $28.8 billion valuation," Nov. 5, 2026 www.prnewswire.com
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